Calculating total scores for criteria

After sending requests for quotation (RFQs) to bidders, you can rank the RFQ responses that you receive from the bidders. The total score must be calculated for each response line before LN can rank the response lines.

Note

Scores are calculated for each criterion specified in the criteria set, which is linked to the RFQ. If a criteria set is not specified for the RFQ, scores are not calculated. The response lines can still be compared and ranked (based on prices and amounts), but the scores are not calculated.

To determine the scores of the criterion types Quantity, Delivery Time, and Subjective, the RFQ Criterion Scoring Schemes (tdpur1193m000) is used. Net Purchase Price, Net Bidder Price, Net Price, and Vendor Rating scores are not specified in the scoring schemes session. Price related scores are based on the response line with the lowest price and with a valid status.

For Subjective criteria, after receiving a bidder's response, you must manually link subjective values to the response in the RFQ Response - Subjective Criterion Scores (tdpur1195m000) session.

When calculating the total score for a response line, Infor LN also considers the weightings. You can use the RFQ Criteria by Criteria Set (tdpur1192m000) session to assign weightings to the criteria in the criteria set.

Delivery time

A total score for the criterion type Delivery Time is calculated based on the delivery time difference between the RFQ line and the response line.

The methods to calculate the delivery time difference:

  • RFQ planned receipt date - response planned receipt date
  • RFQ lead time - response lead time
  • (RFQ start date - response start date) + (RFQ end date - response end date)

LN retrieves the values and scores for the time difference from the RFQ Criterion Scoring Schemes (tdpur1193m000) session.

Negative values imply that the bidder expects to deliver later than the requested time specified in the RFQ line, implying a low score. High values indicate that the bidder expects to deliver earlier than the requested time for the RFQ line.

The total delivery time score calculated method:

DW * retrieved score for the delivery time difference / 100
Quantity

A total score for the criterion type Quantity is calculated based on the deviation in quantity between the RFQ line and the response line.

The quantity deviation calculation method:

(RFQ line quantity - response line quantity) * 100

LN retrieves the values and scores for the quantity deviation from the RFQ Criterion Scoring Schemes (tdpur1193m000) session.

High values indicate that the response line quantity is less than the requested quantity, implying a low score. Negative values indicate that the response line quantity is higher than the RFQ line quantity.

The total quantity score calculation method:

QW * retrieved score for the quantity deviation / 100
Vendor rating

A total score for the criterion type Vendor Rating is calculated based on vendor rating.

LN retrieves the vendor rating percentage from the Vendor Ratings by Period (tdpur8102m000) and the Vendor Ratings by Criterion (tdpur8102m100) sessions.

The total vendor rating score calculation method:

VW * vendor rating percentage / 100
Subjective criterion

A total score for the criterion type Subjective is calculated based on the subjective criterion.

You can specify subjective values and scores for the criterion in the RFQ Criterion Scoring Schemes (tdpur1193m000) session.

When the status of a response line is set to Responded, LN creates the subjective criteria of the RFQ criteria set in the RFQ Response - Subjective Criterion Scores (tdpur1195m000) session. You must manually link a subjective value to the subjective criterion for the response line.

The total score calculation method:

SW * retrieved score for the subjective value / 100
Net purchase price

The total score for the criterion type Net Purchase Price is calculated based on the offered net purchase price.

LN retrieves the lowest response net Purchase Price and the current response net Purchase Price from the RFQ Responses (tdpur1506m000) session. The lowest response price is the lowest submitted price of all the selected bidders of an RFQ. The current response price is the price of the specific bidder.

The total score calculation method:

NPPW * ((lowest response net purchase price / current response net purchase price) * 100) / 100
Net bidder price

The total score for the criterion type Net Bidder Price is calculated based on the offered net bidder price, which includes bidder landed costs and excludes third party landed costs.

LN retrieves the lowest response Net Bidder Price and the current response Net Bidder Price from the RFQ Responses (tdpur1506m000) session. The lowest response price is the lowest submitted price of all the selected bidders of an RFQ. The current response price is the price of the specific bidder.

The total score calculation method:

NBPW * ((lowest response net bidder price / current response net bidder price) * 100) / 100
Net price

The total score for the criterion type Net Price is calculated based on the offered net bidder price, which includes all landed costs (bidder and third party).

LN retrieves the lowest response Net Price and the current response Net Price from the RFQ Responses (tdpur1506m000) session. The lowest response price is the lowest submitted price of all the selected bidders of an RFQ. The current response price is the price of the specific bidder.

The total score calculation method:

NPW * ((lowest response net price / current response net price) * 100) / 100
Legend
DWWeighting for the delivery time difference
QWWeighting for the quantity difference
VWWeighting for the vendor rating
SWWeighting for the subjective criterion
NPPWWeighting for the net purchase price
NBPWWeighting for the net bidder price
NPWWeighting for the net price

 

Example

The following criteria, values, scores, and weightings are specified for the criteria set linked to the RFQ:

Criterion type: Delivery TimeCriterion type: Subjective
Weighting: 10Weighting: 45
Delivery timeScoreColourScore
In time100Red25
One day early75Yellow20
One day late75Blue15
Other25Green3

 

Response lines

  • Response 1 for Bidder A
    Delivery time: in time
  • Color: green
  • Response 2 for Bidder B
    Delivery time: one day late
  • Color: yellow

The total score for the response lines is calculated as follows:

  • Response 1 for Bidder A
    100 * 10 / 100 = 10
  • 3 * 45 / 100 = 1
  • Total score = 11
  • Response 2 for Bidder B
    70 * 10 / 100 = 7
  • 20 * 45 / 100 = 9
  • Total score = 16

Consequently, response line 2 ranks higher than response line 1.

Note

After the total scores are calculated, you can rank the responses. For more information, refer to Ranking RFQ responses.