Source Determination

Use

In SAP APO, you can define different sources of supply from which a product can be procured. During planning in Supply Network Planning (SNP), in Capable-to-Match (CTM), or in Production Planning and Detailed Scheduling (PP/DS), it is necessary to select the sources of supply, meaning that you have to define how or from which source the product (in the required quantity) should be procured. The system can only create a detailed procurement proposal when the source of supply has been determined. In PP/DS, this might be a purchase requisition to a specific supplier or a planned order with exact dates for the component requirements and the resource schedule. In deployment in SNP, the task of source determination is reversed: Deployment does not have to find “sources” from which a product can be procured, but “destinations” to which existing product stock has to be distributed.

Features

Source Determination in SNP and PP/DS

In general, source determination takes place in SNP and in PP/DS using the function described here. (For exceptions, see the application-specific sections on source determination.) Source determination determines the sources of supply permitted according to application-specific values and sets up a ranking list for these sources according to different criteria (such as quota arrangements, procurement priorities, or procurement costs). The source of supply to be used is then selected from this ranking list. In interactive planning, the selection from the ranking list is made manually, while in automatic planning (for example, with a heuristic), it is made automatically according to application-specific criteria.

Source Determination in CTM

CTM does not use source determination from SNP and PP/DS, but executes its own source determination. First, CTM planning always tries to fulfill the requirement on time, even if this means that it does not take account of the quota arrangement, procurement priority, or the multilevel costs. CTM does not use the ranking list from SNP and PP/DS. It uses an individual sequence when determining the source of supply. See Source Determination in Capable-to-Match .