Using sourcing percentages

The sourcing percentage functionality enables you to divide orders among several purchase business partners. This is only of importance if you have several business partners that:

Deliver the same item.
Have the same priority to deliver this item.

In this case, the ordered quantity is divided among these business partners according to the assigned sourcing rule.

Often business partners have minimum or maximum order quantities. In this case, LN takes these quantities into account. The result can differ from the result when there are no quantity restrictions.

The maximum order quantity of a business partners can be less than the assigned number of items, according to the sourcing percentage. In this case, the remainder is divided among the other business partners, according to their sourcing percentages.

In contrast, the minimum order quantity of a supplier can be higher than the assigned number of items. In this case, the business partner does not get an order. All items are divided among the other business partners according to their sourcing percentages.

Note

Sourcing percentages must not be used in a scale of 100. These percentages are just used to make a division.

Examples

In the following examples, the business partners have the same priority to deliver a specific item.

-	Sourcing percentage, example 1	Sourcing percentage, example 2
Supplier 1	50%	50%
Supplier 2	30%	40%
Supplier 3	20%	40%
Totals	100%	130%

The requirement is 1000 items, and the calculations below are done by LN. These calculations result in ordering items from various business partners. The examples are calculated without and with taking the order quantity restrictions into account.

Example 1

-	Calculation	Items*	Quantity**	Calculation	Items***
S1	.50 x 1000	500	400 (max.)	-	400
S2	.30 x 1000	300	400 (max.)	(30/50) x 600	360
S3	.20 x 1000	200	300 (max.)	(20/50) x 600	240

Example 2

-	Calculation	Items*	Quantity**	Calculation	Items***
S1	(50/130) x 1000	385	400 (min.)	-	000
S2	(40/130) x 1000	308	500 (max.)	(40/80) x 1000	500
S3	(40/130) x 1000	308	500 (max.)	(40/80) x 1000	500

Legend

*	The number of items that you want to order from the suppliers.
**	The supplier's maximum or minimum order quantity.
***	The number of items that are ordered from the suppliers in case of order quantity restrictions.