source of supply determination by SNP Heurestics?

[Former Member]

HI

source of supply by SNP Heurestics is determined on the basis of

1) Quota Defined

2) Procurement Priorities

3) costs

My question is if none of the Above mentioned are maintained, how the source of supply will be determined by Heurestics???

Pls share your views

Thanks

Raja kiran R

[sourabh_jain66 · Accepted solution]

Hi Raja,

The heuristic determines the sources of supply as follows:

1. The system first takes into account the defined quota arrangements. 

2. If there are no quota arrangements available, the procurement priority specified in the Production Process Model (PPM), in the Production Data Structure (PDS), or in the transportation lane is used.

3. If both quota arrangements and procurement priorities have been defined, the system uses the quota arrangements.

4. If neither quota arrangements nor procurement priorities exist, the system chooses the most cost-efficient source of supply.

5. If all sources of supply have the same costs, the general guidelines for source determination apply.

Determination of Source of Supply Ranking List

If there is neither a valid transportation lane (for procurement type F; external procurement) nor valid PPM/PDS (for procurement type E; in-house production), the system creates an SNP stock transfer or SNP planned order with no reference to a source of supply. The same applies if there is no product in the source location of the transportation lane.

For more information please see below link;

Source Determination in Supply Network Planning - Supply Network Planning - SAP Library

Hope this helps.

Rgds

Sourabh

[Former Member · Accepted solution]

Hi sourabh,

Thanks for your reply,

Even i am aware with the points which you have mentioned above except with the Point No5 ,"general guidelines for source determination apply", my question was specifically with this only... what are these general guidelines . can you pls elaborate on the same

Rgds

Raja kiran.

[sourabh_jain66 · Accepted solution]

Hi Raja,

As you have already mentioned:

"source of supply by SNP Heurestics is determined on the basis of

1) Quota Defined

2) Procurement Priorities

3) costs"

Fourth element in the source of supply determination is Procurement Type.

So, if priorities and the costs are the same, in-house production takes precedence over external procurement.

If there are variety of external procurement relationships exist for a supplier-product combination, then system also includes following data in source of supply determination:

  a. External procurement relationship type

If several transportation lanes with different external procurement relationship types exist, a scheduling agreement takes precedence over a contract, and a contract has priority over a purchasing info record.

  b. Procurement form

If several external procurement relationships with different forms of procurement exist, the procurement form consignment takes precedence over the procurement forms normal and subcontracting.

If there is neither a valid transportation lane (for procurement type F; external procurement) nor valid PPM/PDS (for procurement type E; in-house production), the system creates an SNP stock transfer or SNP planned order with no reference to a source of supply. The same applies if there is no product in the source location of the transportation lane.

Hope it is clear now.

Rgds

Sourabh

[Former Member · Accepted solution]

HI sourabh

Thanks for your reply

Regds

Raja kiran R