Example: source allocation in order planningIn LN, you must define a sourcing strategy if you want to use more than one source of supply. In a sourcing strategy, per supply source, you can define the minimum and a maximum volume that LN can use to cover requirements. LN then distributes the requirements over the specified supply sources. If you define a sourcing strategy in the Sourcing Strategy (cprpd7110m000) session, you must choose between two source allocation rules:
According to these rules, LN distributes the required demand over the selected sources. Source allocation rule: Percentage Suppose you set the Source Allocation Rule field in the Sourcing Strategy (cprpd7110m000) session to Percentage, and specify the following source values:
You record an item's demand forecast in the item master plan and subsequently generate planned orders based on this forecast. The following table shows the demand forecast:
If you clear the Allow Multiple Sources per Requirement check box in the Generate Order Planning (cprrp1210m000) session or the Generate Order Planning (Item) (cprrp1220m000) session, LN generates a single planned order for each requirement. In other words, LN generates one planned order per plan period. The following table shows a possible distribution of the planned orders over the available types:
The resulting distribution is:
Source allocation rule: Priority If you set the Source Allocation Rule field in the Sourcing Strategy (cprpd7110m000) session to Priority, you can define the priority for each source. The priority source-allocation rule only applies to order planning. In master planning, a priority source-allocation rule is interpreted as a Percentage source-allocation rule. Suppose you define the following priorities:
First, LN tries to cover the demand with planned distribution orders. If the quantity that internal suppliers can deliver is insufficient, LN generates purchase orders to supply the remaining quantity.
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