Sources of supply: production, purchase, or distributionSourcing is the method to determine the source of supply for a plan item to satisfy demand. Sourcing can be defined on two levels:
The supplying relationships between clusters can be defined. These relationships represent the possible supplies between warehouses. Enterprise Planning always translates the cluster to the default warehouse in that cluster. The supplying relationships are selected based on the supply strategy, if no supplying strategy is applicable, they are based on the priorities in the supplying relationships. Three sources of supply Enterprise Planning works with three sources of supply:
You can use the following methods to determine from which source a plan item is supplied:
If a plan item has a valid sourcing strategy, LN ignores the plan item's default supply source. Default supply source If you want a single permanent supply source, a default supply source is enough and you do not need sourcing strategies. If no valid sourcing strategy is present, LN checks the value of the Default Supply Source field in the Items - Planning (cprpd1100m000) session. This default supply source is independent of the value that you specified in the Item Type field in the Items - General (tcibd0501m000) session. The Default Supply Source field can have the following values:
You can use date-effective item data to change an item's item type from manufactured item to purchased item and vice versa on exactly defined dates. Sourcing strategy Sourcing strategies allow you to use a combination of multiple supply sources at the same time, or one after another. Example You can specify that 60% of a requirement is supplied by production orders, 30% by distribution orders and 10% by purchase orders. You can also specify that LN must first try to cover the requirements with production orders, and if that is not possible, use purchase orders. Suppose you want to start to manufacture a component that you used to buy from an outside supplier. Then, you can also specify that LN must generate purchase orders up to, for example, May 15th, and after that date generate production orders. The use of sourcing strategies If you generate a master plan or planned orders, LN first searches for a valid sourcing strategy in the Sourcing Strategy (cprpd7110m000) session. You can link a sourcing strategy directly to a plan item, or link the sourcing strategy indirectly, via a cluster or item group. If LN finds no effective sourcing strategy, LN uses the default supply source. For more information, refer to Sourcing strategies. Note LN generates a signal if you define a sourcing strategy for a plan item for which a date effectivity definition exists. Relevant sessions and fields You can set up the date effectivity in the following sessions and fields:
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