Sourcing Strategy (cprpd7110m000)

Use this session to define sourcing strategies.

 

Scenario

The identification of an overall planning solution.

Each scenario represents one overall planning solution, and involves particular settings for the planning of items and resources. You can use scenarios to analyze and compare various planning options and to find the best planning solution. For example, you can vary demand forecasts or sourcing strategies.

One of the scenarios is the actual scenario, which corresponds with the actual planning situation. You can only transfer planned orders and production plans from the actual scenario to the execution level of LN.

Plan Level

The level within a hierarchical planning structure.

When you plan on a higher plan level, plans are general and less detailed.

Example
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Plan level 1 is the highest plan level; the higher the number, the lower the plan level.

You can carry out distribution planning with product families, because each plan level has its own sourcing rules and supply rules.

Planning Cluster

An object used to group warehouses for which the inbound and outbound flow of goods and materials is planned collectively. For this purpose, the demand and supply of the warehouses of the planning cluster is aggregated. Within a planning cluster one supply source is used, such as production, purchasing or distribution.

If multisite is implemented, a planning cluster must include one or more sites. The site or sites include the warehouses for which the planning processes are performed. A site is linked to one planning cluster.

Item Group

A group of items with similar characteristics. Each item belongs to a particular item group. The item group is used in combination with the item type to set up item defaults.

Item

An item with the order system Planned.

The production, distribution, or purchase of these items is planned in Enterprise Planning based on the forecast or the actual demand.

You can plan these items by means of the following:

  • Master-based planning, which is similar to master production scheduling techniques.
  • Order-based planning, which is similar to material-requirements planning techniques.
  • A combination of master-based planning and order-based planning.

Plan items can be one of the following:

  • An actual manufactured or purchased item.
  • A product family.
  • A basic model, that is, a defined product variant of a generic item.

A group of similar plan items or families is called a product family. The items are aggregated to give a more general plan than the one devised for individual items. A code displayed by the item code's cluster segment shows that the plan item is a clustered item that is used for distribution planning.

Note
  • This is the item code without the planning cluster segment, because this segment is not used.
  • If you leave this field empty, the sourcing strategy is defined on item group level or on planning cluster level.
General
Effectivity
Effectivity Date

The effective date of the sourcing strategy.

Standard Configuration

If this check box is selected, this sourcing strategy is valid for the standard configuration. If you do not define an exception, LN takes into account this sourcing strategy to plan supply during the time interval displayed in the Effectivity group box.

You can link an exception to the sourcing strategy for which you selected the Standard Configuration check box. In that case, you must clear the Valid check box in the Exceptions (tcuef0105m000), which means that LN does not take into account the sourcing strategy to plan supply. In other words, you can only define an exception to make the corresponding sourcing strategy unavailable for planning.

If there are no exceptions present, LN automatically selects the Standard Configuration check box.

You can clear the Standard Configuration check box after you linked the exception.

Expiry Date

The expiry date of the sourcing strategy.

Exceptions Present

If this check box is selected, an exception is defined for the corresponding sourcing strategy in the Exceptions (tcuef0105m000) session. If the Standard Configuration check box is also selected, the exception states that the standard configuration is not valid.

If this check box is cleared, no exceptions are defined for the corresponding sourcing strategy. LN takes into account the corresponding sourcing strategy during the time interval displayed in the Effectivity group box.

Reason

In this field you can enter a description for this strategy.

Allocation
Source Allocation Rule

The rule that defines how a required volume is divided over the following sources of supply:

  • Job Shop
  • Purchase
  • Distribution

The source allocation rule is either Percentage or Priority.

This field defines how a volume is divided over the different supply sources. The rule selection determines the interpretation of the following fields:

  • Distribution
  • Job Shop
  • Purchase
Note

In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of this field.

Allowed values

Possible Values

Distribution

You can If the source allocation rule is Percentage, the Distribution field is interpreted as the percentage of the requirements that is covered by planned distribution orders.

If the source allocation rule is Priority, the Distribution field is interpreted as the priority of the planned distribution orders compared to other supply sources.

Note
  • In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of the Source Allocation Rule field.

  • LN does not create orders for more than the required order quantity, even if the order volume drops below the minimum volume.

Job Shop

If the source allocation rule is Percentage, the Job Shop field is interpreted as the percentage of the requirements that is covered by planned production orders.

If the source allocation rule is Priority, the Job Shop field is interpreted as the priority of the planned production orders compared to other supply sources.

Note
  • In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of the Source Allocation Rule field.

  • LN does not create orders for more than the required order quantity, even if the order volume drops below the minimum volume.

Repetitive

If the source allocation rule is Repetitive, the Repetitive field is interpreted as the priority of the repetitive scheduling.

Note
  • In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of the Source Allocation Rule field.

  • LN does not create orders for more than the required order quantity, even if the order volume drops below the minimum volume.

Purchase

If the source allocation rule is Percentage, the Purchase field is interpreted as the percentage of the requirements that is covered by planned purchase orders.

If the source allocation rule is Priority, the Purchase field is interpreted as the priority of the planned purchase orders compared to other supply sources.

Note
  • In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of the Source Allocation Rule field.

  • LN does not create orders for more than the required order quantity, even if the order volume drops below the minimum volume.

Subcontract

If the source allocation rule is Subcontract, the Subcontract field is interpreted as the priority for subcontracting orders.

Note
  • In master planning, every source allocation rule is interpreted as a Percentage source allocation rule, regardless of the value of the Source Allocation Rule field.

  • LN does not create orders for more than the required order quantity, even if the order volume drops below the minimum volume.

Position Number

The number that identifies a data record or a step in a sequence of activities. Sequence numbers are used in many contexts. Usually LN generates the sequence number for the next item or step. Depending on the context, you can overwrite this number.