Until now, in the quota arrangement function, each lot is allocated to one source of supply. The allocation is made using the quota rating and the formula:
Quota rating = quota-allocated quantity (+quota base quantity)
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Quota
The source of supply, that has the smallest quota rating, receives the complete lot, that is, the sequence in that the sources of supply are chosen is determined by the quota rating.
New in 3.0
1. Minimum and maximum lot size and rounding profile in the quota arrangement
In 3.0, it is possible to maintain a minimum lot size, a maximum lot size
and a rounding profile.
The minimum or maximum lot size that is maintained in the quota item overrule
the entries in the material master record and are only valid for the allocated
source of supply. If the minimum or the maximum lot size is only maintained in
the material master record, then the values here are valid for all sources of
supply.
Minimum lot size : the minimum lot size defines a minimum quantity for the order proposal. If a source of supply is determined, on the basis of the quota arrangement logic, for which a minimum lot size has been entered and if the requirements quantity is smaller than the minimum quantity, the system creates the order proposal for the amount of the minimum quantity.
Maximum lot size: the maximum lot size determines the largest possible quantity for the order proposal. If a requirement exceeds the maximum lot size recorded for the quota item, then several order proposals are created for the maximum lot size until the total requirement is covered. If a 'rest quantity' remains that is smaller than the maximum lot size the last order proposal is created for the amount of the rest quantity. Note that after each order proposal is created, the quota arrangement is restarted, that is, the quota rating is recalculated to check which source of supply is next in line. If the quota of a source of supply is high, then it can be used, if necessary to create several order proposals for the maximum lot size.
Indicator "Only once": to avoid that more than one order proposal is created per requirement for a source of supply with a maximum lot size, you can set the indicator, 'only once' for this particular source of supply. By using this indicator, one source of supply is only used once per requirement. The indicator, 'only once' only makes sense in combination with the maximum lot size.
Example for the maximum lot size
Requirement of 1000 pieces (period lot size: grouped according to weeks)
| Quota | Max.lot size | quot-alloc.qty | ||
|---|---|---|---|---|
| Vendor A | 80 | 200 | 200 | Ind: Only once |
| Vendor B | 15 | 200 | ||
| Vendor C | 5 | 200 |
The quota rating of vendor A is the smallest. Therefore, vendor A receives an order proposal for 200 pieces due to the maximum lot size. Then the quota rating is recalculated. Although the quota-allocated quantity has increased from 200 to 400 for vendor A, the quota rating for this vendor is smaller than for the other two vendors. Normally, the next order proposal (for 200 pieces) would also be sent to vendor A, however, as the indicator, 'only once' is set, vendor A cannot be used a second time. Therefore, the next order proposal is made for vendor B for 800 pieces as no maximum lot size has been set for this vendor.
With the indicator, only once, you achieve a situation where vendor A in this example, only receives one order proposal per week (due to the weekly grouping) for a maximum of 200 pieces (for example, this is the preferred vendor but he has only limited capacity). With this type of capacity monitoring, quantities that have already been released are not taken into consideration. This is possible using the maximum release quantity.
Rounding profile: if a source of supply with rounding profile is selected, then the order proposal quantity is adjusted to suit the rounding profile.
2. Priority and maximum release quantity per period
With the priority function, the sequence can be defined irrespective of the quota rating and, thus, irrespective of the quota-allocated quantity. The source of supply that has been allocated a priority is always considered first. If several sources of supply havepriorities, then the source of supply with the smallest number in the priority field is selected first. Only once all the sources of supply with priorities have been selected, does the system then select the sources of supply with no priorities. Then, the system implements the normal logic for quota arrangements using the quota rating. You can also enter a maximum release quantity for a vendor.
The maximum release quantity can be used to cover situations where, for example, a source of supply can only deliver a certain quantity in a certain period. It is therefore possible to monitor capacities with the maximum release quantity. Here, the maximum available capacity of the source of supply is defined by the release quantity.
The maximum release quantity is determined for a certain period of time. Here, the number of periods is entered for which the release quantity is valid, for example, a quantity of 200 pieces per week. The system checks whether there are firmed receipts or issues in the specified period that have already been scheduled or allocated and compares this quantity with the maximum release quantity.
The following firmed elements are taken into account: firmed order proposals and planned orders, firmed schedule lines, production orders, purchase orders. If more firmed receipts are scheduled in a period than the maximum release quantity allows, then this source of supply is no longer used. Here the system always checks using the availability date of the MRP element. For newly created order proposals, the system uses the requirements date of the source requirement.
If a certain percentage of the maximum release quantity has already been used for a source of supply and a further requirement occurs that exceeds the rest quantity, then the system splits the requirement quantity. A further order proposal us created for this source of supply for the difference between the release quantity and the order proposal quantity. The rest of the requirement quantity is allocated to the next vendor whose turn it is according to the quota rating logic. remaining requirements quantity
Example for the maximum release quantity
In the procurement procedure for a particular material, you have a preferred vendor, vendor A that is always to be selected first. However, this vendor can only deliver 100 pieces per week. If you require more than 100 pieces, then the remaining quantity is to be procured from vendor B. However, this vendor also has a limited capacity and can only deliver 200 pieces per week. If you require more than 300 pieces in a week, then the remaining quantity is to be divided between vendors C and D in the ratio 70 : 30. The source of supply is maintained as follows:
| Quota | Priority | Max. releaseQty | ||
|---|---|---|---|---|
| Vendor A | 1 | 100 | ||
| Vendor B | 2 | 200 | ||
| Vendor C | 70 | |||
| Vendor D | 30 |
The requirements quantity amounts to 1000 pieces. The system selects vendor A first, however, due to the limited capacity, he only receives an order proposal for 100 pieces. The system then selects vendor B who receives an order proposal for 200 pieces. The remaining 700 pieces are divided between vendors C and D depending on the quota ratings. This is the procedure, unless, other purchase orders or other firmed receipts already exist for vendors A and B in the week in that the order proposals lie. If, for example, a purchase order already exists for vendor A in this week for 100 pieces, then this vendor is no longer taken into consideration. If a purchase order for 40 pieces already exists, then he receives a further order proposal for 60 pieces. The remaining quantity is distributed further.
3. The splitting quota
The quota arrangement logic until now has taken for granted that a requirement quantity is allocated to a vendor. The vendor that has the lowest quota rating is chosen and the vendor that is chosen also receives the complete requrement quantity (if no maximum lot size or maximum release quantity has been entered). You can now use the splitting quota to distribute an order proposal over various sources of supply, that is the quantity can be split. The order quantity is calculated according to the following formula:
Quota source of supply X * Requirement quantity
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Sum of all quotas
The quota-allocated quantity of a source of supply or the quota rating is not relevant for the splitting quota. The system splits the requirements according to the sequence that is deinfed by the quota, that is, the vendor with the highest quota is selected first. The sequence defined by the quotas can be overruled by priorities, that is, vendors that have been allocated priorities are always selected first. The quantity, however, is always calculated according to the formula above using the quotas.
Determining a minimum quantity for splitting
The minimum quantity for the splitting quota determines that the lot must reach at least this minimum quantity before it can be split. This means that if a requirement is smaller than the minimum quantity, the system only selects the vendor whose turn it is according to the quota arrangenent calculation. In this case, the system works according to the quota arrangement that existed until now, and the quantity is not split. If a requirements quantity has already been split, and the first partial quantity has been allocated and the remaining quantity happens to result in a lot that is smaller than the minimum quantity, then the system does not split this quantity further. Instead, the remaining quantity is then allocated to a vendor that has not yet been used and whose quota rating is the smallest.
Example for the splitting quota
Minimum quantity 400
| Quota | |
|---|---|
| Vendor A | 40 |
| Vendor B | 30 |
| Vendor C | 20 |
| Vendor D | 10 |
Requirement for 1000 pieces, exact lot size
Vendor A receives the first order as it has the greatest quota. The
quantity is calculated using the formula mentioned above; 40 * 1000 / 100 =
400 pieces.
600 pieces still remain. Vendor B receives the next order; 30 * 600 / 60 = 300
pieces. As vendor A has already received an order, its quota is no longer
taken into consideration.
300 pieces still remain. As this quantity is less than the minimum quantity,
the system does not split any further. The complete remaining quantity is
allocated to the vendor that has the lowest quota rating.
You must enter the indicator for splitting quotas for the lot-sizing
procedure in Customizing if you want to use this technique.
Please reas this chapter in the Implementation Guide:
Proceed
The new functions are only taken into consideration in MRP in the planning run.