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.
To determine the scores of the criterion types Obsolete, Obsolete, Objective, and Subjective, the RFQ Criterion Scoring Schemes (tdpur1193m000) is used. Obsolete, Obsolete, Obsolete, and Obsolete 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, 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 Obsolete 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 Obsolete 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)
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 Obsolete 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
Objective criterion
A total score for the criterion type, Objective is calculated based on the objective criterion. You can specify objective values and scores for the criterion in the RFQ Criterion Scoring Schemes (tdpur1193m000) session.
Weighting * Criteria Score / 100
Net purchase price
The total score for the criterion type Obsolete is calculated based on the offered net purchase price.
LN retrieves the lowest response net Net Price and the current response net 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:
NPPW * ((lowest response net purchase price / current response net purchase price) * 100) / 100
Net bidder price
The total score for the criterion type Obsolete 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 Obsolete 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 | |
---|---|
DW | Weighting for the delivery time difference |
QW | Weighting for the quantity difference |
VW | Weighting for the vendor rating |
SW | Weighting for the subjective criterion |
NPPW | Weighting for the net purchase price |
NBPW | Weighting for the net bidder price |
NPW | Weighting for the net price |
Example
The following criteria, values, scores, and weightings are specified for the criteria set linked to the RFQ:
Criterion type: Obsolete | Criterion type: Subjective | ||
---|---|---|---|
Weighting: 10 | Weighting: 45 | ||
Delivery time | Score | Colour | Score |
In time | 100 | Red | 25 |
One day early | 75 | Yellow | 20 |
One day late | 75 | Blue | 15 |
Other | 25 | Green | 3 |
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.