Case for using quota arrangemnt

[Former Member]

Experts,

Currently we procure  everything of a certain product group  from external vendor . Now,  if we decide to start manufacturing lets say 40 percent of each of the product in-house and procure 60 percent for the first 3 months. And then make 60 percent in house and 40 % procure from outside and gradually in a year , make 80% in house and 20 % procure.  How can we model this using  SNP Heuristics.  Currently we use APO PPDS to plan for in house production and we use SNP heuristics for procurement planning.  First question is -Does Quota arrangement work for this? If so, need some guidance on setting this up..like

- Inbound Quota is what i should use ?

-under section  quota arrangement item, should i use External Prod Rel or IN-House prod

- Parameters..whats this.

Thanks,

Carlos

[m_manimaran · Accepted solution]

Yes,

Quota arrangement can be used for your requirement.

The validity period at the Quota header level can be used to set the period for which you maintain different quotas.

You have to include two line items (one for external procurement with your supplier and another one for In house production) in the Quota item for your product and set the quotas.

Since it is the material you are purchasing from supplier to your plant, you must select your plant as the location in the initial screen and the inbound quota arrangement option.

Regards,

Manimaran M.