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IBP Optimizer - Source of supply optimization in IBP using Cost from Vendor contracts


How to set up Source of Supply optimization in IBP ( external vendors ) ,

1) what all master data templates I need to use for modeling external source of supply

2) what are the input key figures

3) what are the out put key figures

4) How to model transportation lanes and Transportation key figures from DC to HUB or from Hub to Customer


I want to consider cost from vendor contracts and consider that cost for source of supply optimization


Cost in contract for vendor A $ 50

Cost in contract for vendor B $ 60

Cost in contract for Vendor C $ 45

So my optimizer should select vendor C based on Cost as cot for vendor is the lowest cost



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1 Answer

  • Best Answer
    Apr 13, 2018 at 01:39 PM

    Hello Nichole,

    Please see my answers below:

    1) You may configure vendors in 2 different ways:

    • Define an external source of supply (source type U) in MDT Production Source Header: in this case, the product or component is procured from an unspecified and unlimited external source outside the supply chain network and supplied at the location with the U-rule - see our SAP Help Portal Production Source of Supply Header.
    • Or define the vendor directly in MDT Location by maintaining Attribute LOCTYPE = V. This way, since the supplier location type V marks the outer border of the supply chain network, you must not define a source of supply for it.

    2) and 3) You may refer to our SAP Help Portal Key Figures, section "Key Figure Overview". In there, in the column "Input (I) / Output (O)", you can see which Key Figures are Input, Output or Input/Output.

    4) Transportation Lanes are defined in the MDT Location Source of Supply. You'll define the Product ID, Ship-From Location ID and Location ID - see our SAP Help Portal Location Source of Supply.

    The costs from vendors are maintained in 2 Key Figures: Fixed External-Receipt Cost (FIXEDEXTERNALRECEIPTCOST) and External-Receipt Cost Rate (EXTERNALRECEIPTCOSTRATE). You may find all costs considered by Optimizer in our SAP Help Portal Input Key Figures for the Optimizer Only.

    Best regards,

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