| Sourcing strategies overviewEnterprise Planning works with five sources of supply: - Job Shop — manufacture goods at a production facility
- Purchase — acquire goods from a business partner
- Distribution — acquire goods from elsewhere in your
company or from an affiliated company
- Repetitive — manufacture goods based on a limited number
of predefined configurations
- Subcontract — outsourcing parts, or the whole manufacture
to another company
Note If multisite functionality is active, sourcing strategies
are defined per planning cluster. Sourcing strategies
have priority over the default supply source. If an applicable
sourcing strategy exists, Enterprise Planning uses the sourcing strategy, and ignores the default
source.
Sourcing strategy If you want to use more than one source of supply, or
deviate from the default source in one particular scenario, you must define a sourcing strategy for the item involved. You can define sourcing strategies in the Sourcing Strategy (cprpd7110m000) session. Scenario and validity period A sourcing strategy is valid for a particular scenario. A sourcing strategy is valid for a particular time period.
You can enter an effective date and an expiry date for a source strategy to
determine for which time period the sourcing strategy is valid. Sourcing strategies for planning clusters and item
groups Unit effectivity Source allocation rule When you define a sourcing strategy, you must choose
between the following: Source allocation rule: Percentage If the source
allocation rule is Percentage, you define
the percentage for each source in the Sourcing Strategy (cprpd7110m000) session. In master-based planning, LN distributes the supply plan according to these percentages for each plan period. In order-based planning, the percentages can be used in two ways: - If you select the Allow Multiple Sources per Demand check box in the Generate Order Planning (cprrp1210m000) session or the Generate Order Planning (Item) (cprrp1220m000) session, LN uses the percentages
to divide a single requirement over the various sources.
- If you clear the Allow Multiple Sources per Demand check box, LN tries to approximate
the percentages as closely as possible, but assigns each requirement to one
source. In other words, LN does not split planned orders.
For more information about source allocation in order
planning, refer to Example: source allocation in order planning. Source allocation rule: Priority If the source allocation rule is Priority, you 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. For more information about sourcing allocation rule Priority, refer to online manual topic Example: source allocation in order planning. Note: If LN has first attempted to cover a requirement
by selecting the source Purchase, and this source cannot fulfill the requirement,
the next step depends on the question whether the plan item's supplier is a single-source supplier. The behavior depends on the Preferred field in the Items - Purchase Business Partner (tdipu0110m000) session: Preferred is set to Single Source If the supplier cannot fulfill the required demand, LN uses the
lower-priority supply sources ( Job Shop or Distribution) from the sourcing strategy. Preferred is set to Preferred If the supplier cannot fulfill the required demand, LN generates a planned production order with an empty supplier
field.
Minimum and maximum volume Per supply source you can define minimum and maximum
volumes, and specify the time period for which these limits apply. If the order volume for a specific source exceeds the
maximum volume (within the specified time period), LN can move part of the
volume to another source. If the order volume for a specific source drops below the
minimum volume, LN can
use a larger part from the required quantity to generate planned orders for
that source. As a result, the total ordered quantity for other sources will be
reduced. Note: Do
not confuse the minimum volume fields with the minimum order quantity defined in the item data. LN does not create
orders for more than the required quantity, even if the order volume falls
below the minimum volume.
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