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quota arrangement

Materials Management (MM)

Mechanism enabling the system to compute which source of supply is to be assigned to a requirement that has arisen for a material.

The quota arrangement facilitates determination of the applicable sources of supply for a purchase requisition at a certain point in time.

The setting of quotas permits the automatic apportionment of a total material requirement over a period to different sources.

A quota arrangement consists of quota arrangement records identifying the source (vendor, internal plant etc.), the validity period, and the quota.