Supply Risk Mitigation
The supply risk status is determined on a single-level and multilevel basis along the bill of material. The number of alternative sources of supply is considered.
The single-level determination of the supply risk status affects the material itself. Multilevel determination affects all components of the BOM, including cross-plant components.
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High Risk: The preferred sources of supply for the components do not meet the requirements set out in the supply risk profile, there is not a sufficient number of alternative sources of supply available, or the profile does not allow alternative sources of supply to be considered as alternatives.
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Medium Risk: Currently, not all preferred sources of supply of the components meet the requirements set out in the supply risk profile, but a sufficient number of valid sources of supply are available to meet the requirements for all components.
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Low Risk: All preferred sources of supply for all input materials meet the requirements defined in the supply risk profile.
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High Risk: The preferred source of supply for this material does not meet the requirements set out in the supply risk profile, no alternative sources of supply are available, or the profile does not allow alternative sources of supply to be considered as alternatives.
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Medium Risk: The preferred source of supply for the material to which the supply risk profile is assigned does not currently meet the requirements set out in the supply risk profile, but valid alternative sources of supply are available that meet the requirements
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Low Risk: The preferred source of supply of the material meets the requirements set out in the supply risk profile
The possible sources of supply are determined from the purchasing source list, the preferred ones by determining the one that would be chosen by MRP. For purchasing-related sources of supply, the country in which the underlying supplier is located should be chosen; for internal sources of supply, the country of the plant should be chosen.
