Entering content frameProcess documentation Supply Source Determination Locate the document in its SAP Library structure

Purpose

The supply source determination function is used to assign sources of supply to requirements. This takes account of both internal sources of supply (distribution centers) and external sources of supply (external vendors).

This graphic is explained in the accompanying text

The System uses source determination, for example, in Requirements Planning, Ordering, Allocation and Store Order functions. Each application can control how the supply source determination proceeds and analyze the results differently.

Prerequisites

By using the supply source indicator in the article master logistics data, you can define whether it is preferable for the system to search for an internal or an external source of supply. Supply sources can be defined in the system as follows:

You can define internal supply sources by entering one or more supplying sites in the site master data. You have the option of assigning the supplying sites to sites at the merchandise category level or to entire assortments.

You can enter a validity period and a priority for each supplying site. Priorities enable you to select a supplying site if various valid supplying sites exist for a particular period.

Purchasing information records define internal or external sources of supply.

The system evaluates the outline agreements that exist in the system when determining supply sources. An outline agreement can be related to an external source of supply (for example, value contracts) or an internal source of supply (for example, stock transport scheduling agreement). Outline arrangements with suppliers can be viewed via the purchasing information record, even if outline agreements do not exist.

Quotas are used very rarely in retail. Quotas can be used to define various internal or external sources of supply to which procured merchandise is to be distributed using quotas. You can also enter outline agreements as sources of supply. You can use quotas, for example, that cannot be supplied by a sole vendor because demand is too great.

Note

If relevant quota arrangements exist, the system checks in Customizing if the quantity required has to be split among different sources of supply (quota arrangement split). The quantity required is then split up among several supply sources in line with the quota arrangements.

Source lists are used very rarely in retail. You can assign internal or external sources of supply, including validity periods, to a combination of articles or sites. You can also enter outline agreements as sources of supply. You can use source lists, for example, as a fine-tuned control for determining sources for particular articles.

Process Flow

The system proceeds as follows:

  1. Evaluate quota arrangements

    2. Refer to Source Determination: Evaluating Quota Arrangements

  2. Evaluate source lists

    3. Refer to Source Determination: Evaluating Source Lists

  3. Evaluate search sequences in the article master

Refer to: Source Determination: Finding External or Internal Sources of Supply

As soon as the system has found at least one valid source of supply, it ends the search and uses the source of supply it found as the search result.

If you carry out source determination online and the system finds more than one possible source of supply, you will receive a window containing the system suggestions. You can only select one source of supply.

If you carry out supply source determination in the background, the system must determine a clear source of supply so that the system can then generate a purchase order automatically.

 

See also:

 Leaving content frame