5 Replies Latest reply on Feb 1, 2011 6:04 PM by Karthik Gopaluni

    Sourcing Rule

      Dear Experts,
      1) Sourcing rule works on allocation% or Rank Based?
      2) If There are Two suppliers A & B and allocation 55% and 45%respectivly and ranking 1 for A, and rank 2 for B How it will work?
      3) If Two suppliers are equal Allocation%,and rank 1 and 2 for A and B How it will work?

      Thanks in advance
        • 1. Re: Sourcing Rule
          Sandeep Gandhi, Consultant
          1) Sourcing rules work on allocation as well as rank. But if you are using unconstrained plan, then Oracle will consider only Rank1 suppliers and split the demand according to the allocation %.

          2) For planning to consider such a rule, the total of allocation % for level1 must be 100. In your example, it is not 100 so Oracle won't consider it.

          3) See the answer to 2 above.

          In general, unconstrained plan will look at rank1 only.
          Constrained plan will look at other ranks if the capacities of Rank1 supplier is not able to meet your demand.

          Hope this answers your question
          Sandeep Gandhi
          Independent Techno-functional Consultant
          1 person found this helpful
          • 3. Re: Sourcing Rule
            Hi Sandeep Gandhi,...

            in 1st question need to know what is unconstrained plan,, can give with example

            2nd i have mensiond 55 and 45 % respectively for suppliers A and B here allocation % is 100 but rank mensioned 1 and 2... what is level 1 must be 100 in your answer ( means rank shoud be 1 for both)if rank one how it will work for 3rd question

            and one more question will sourcing rule works with blanket purchase agrement when u have two approved suppliers for an item ?

            i came to know that sourcing rule only works with two suppliers when u r using MRP planning and also need to plan workbench and plan orders....is it true..if yes how it will work

            thanks in advance
            waiting for u r reply
            • 4. Re: Sourcing Rule
              Sandeep Gandhi, Consultant
              1) Unconstrained plan is a type of plan in Advanced Supply Chain planning (which is like MRP)
              2) You have to have 100% for supplier A with Rank1 and 100% for supplierB at rank 2.
              3) Yes - blankets will work.
              4) Yes - you need MRP to make full use of sourcing rules with 2 suppliers. You define a plan, enter your supply and demand sources, run the plan and use workbench to release planned order that are suggested by the planning engine.

              Hope this answers your question
              Sandeep Gandhi
              Independent Techno-functional Consultant
              • 5. Re: Sourcing Rule
                Karthik Gopaluni
                To add to Sandeep..un-constrained plan is a plan which does not consider resource capacity/efficiency and Capable to Promise (CPT) for assemblies to make the FG's/meet the demand.
                Like the first reply mentioned, the unconstrained plan will NOT look at Rank 2 suppliers and split the allocation % between Rank 1 suppliers if there are multiple level 1's for an item
                1 person found this helpful