Hi Experts,
I have set-up the ff. for Quota Arrangement.
1. Material Master:
a. Quota Arrangement Usage = 3
b. Lot Size = PK with Planning Calendar as Quarterly (with Splitting Quota set-up)
c. Rounding Profile = 4,000 pcs.
2. Source List
a. MRP Relevant = 1 (both for Vendor A and Vendor B)
3. Quota Arrangement
a. Proc. Type = F
b. Vendor A = 80%
c. vendor B = 20%
Stock on Hand : 474 pcs.
Requirement 1: 7,506 pcs.
Requirement 2: 980 pcs.
When MRP run using MD03, system generated 2 PRs:
PR1 = 8,000 pcs for Vendor B to support Requirement 1
PR2 = 486 pcs. for Vendor A to support the remaining Requirement
What Quota Arrangement (Allocation Quota Arr. or Splitting Quota Arr.) did the system used? Why did the system generated PR1 for Vendor B, when in fact Vendor A has a higher quota?
Thanks in advance,
SD
5 Answers
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Best Answer
Former MemberPosted on Jul 30, 2009 at 10:46 AMHi,
The quota determines which portion of a total requirement over a period should be procured from the source in question. The Quota is considered for the first time allotment of the requirement.
During the second time allotment, the system calculates the Quota Rating and finds the source from which a specific material requirement is to be procured from among the sources that have been assigned a quota in the current validity period.
The system assigns a quota rating to each source of supply. The quota rating is calculated as follows:
Quota rating =
Quota-allocated quantity + Quota base quantity
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Quota
where
Quota-allocated quantity= Total quantity from all purchase requisitions, purchase orders, release orders, and scheduling agreement schedules allocated to a given source of supply.
Here, the important point is, the system will consider the Balance quantity to be supplied by the particular Source of supply as "Quota- allocated quantity", but, not the total quantity ordered as on date.
Quota base quantity
= Quantity used to control the quota arrangement when new sources of supply are included.
Quota
= A number specifying which portion of a total requirement should be obtained from a certain source.
The source with the lowest quota rating represents the valid source, even if it has a quota rating of 0 (that is, the quota-allocated quantity and the quota base quantity have the value 0). If more than one source of supply has a quota rating of 0, the item with the highest quota is the valid source of supply.
In connection with the quota arrangement, the splitting quota is only relevant to Materials Planning, not to Purchasing. In Materials Planning, requirements can be split up among various vendors. This is not possible in Purchasing.
So, please check the GR postings related to each Vendor and based on that calculate the Quota-Allocated Quantity for your two vendors. Then, calculate 'Quota Rating' and check, whether functioning properly.
Regards,
Narayana.
Edited by: Narayana Ghanta on Jul 30, 2009 4:17 PM
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Posted on Jul 27, 2009 at 10:01 AM
Dear SD,
Check what is the priority maintained for the quota arrangement in the T Code MEQ1.
I guess in your case the priority 1 must be given to vendor B and the 2nd priority to the vendor A.
Check and revert back.
Regards
Mangalraj.S
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Former MemberPosted on Jul 27, 2009 at 11:58 AM
Hi,
Quota arrangement decides the distribution of required quantity, not only on the Quota mentioned in the Quota Arrangement; but also, on various factors like:
- Maximum Release Quantity per Period,
- Maximum Quantity of Quota per Vendor,
- Quota Base Quantity ,
- Allocated Quantity of Quota Arrangement Item (Total quantity procured to date from the quota arrangement item source),
and The Quota Rating (if some quantities are already procured from the available Vendors, to date).
Hence, please look into these details also.
Regards,
Narayana.
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Posted on Jul 27, 2009 at 03:24 PM
Hi,
Please check the maximum qty provided to vendor A in the quota.Please check the procured qty till now with this vendor.and also for the vendor A.
Maximum quantity of quota arrangement item
Use
A quota arrangement item is no longer suggested as the source if the quota-allocated quantity is equal to or exceeds the maximum quantity
Minimum quantity for splitting quota
Specifies for the splitting quota the minimum quantity that a lot must have in order to be apportioned among several sources of supply in the planning run.
If the lot is smaller than or equal to the minimum quantity, the system will proceed on the basis of the usual quota arrangement logic.
Dependencies
Allocation by quota using splitting quotas is only carried out via a requirement planning run, subject to the following preconditions:
Through the appropriate entry in the field Quota arrangement usage (on the MRP data screen 2 or Purchasing screen) it must have been specified that a quota arrangement is to be applied in the planning run.
The indicator for the splitting quota must be set for the the lot-sizing procedure used for materials planning purposes in Customizing.
Regards,
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Former MemberPosted on Aug 03, 2009 at 01:13 PM
Hi,
By the statement, "In connection with the quota arrangement, the splitting quota is only relevant to Materials Planning, not to Purchasing" , What I want to say is if MRP is used for Material procurement, then only splitting quota field has some significance.
As correctly understood- on first allotment , system will use Quota; but on the second and succeeding allotment, system will use Quota Rating to allocate.
The system determines the source of supply of a requested material on the basis of the following factors (in the order shown):
1. Quota arrangement : The system first determines whether a quota arrangement within whose validity period the delivery date in the requisition falls exists for the material.
If a quota arrangement exists, the system determines the vendor from whom the material is to be procured according to the quotas assigned to the vendors and then suggests the source.
If no source can be determined this way, the system checks the source list.
2. Source list: The system determines whether an entry in the source list within whose validity period the delivery date of the requisition falls exists for the material. The source in question may be a fixed vendor or an outline agreement (contract or scheduling agreement). If the source list contains a unique source, the requisition is assigned to that source.
If several sources are found, a box appears for selection purposes.
If no source could be determined, the existing outline agreements and info records are examined.
3. Outline agreement and info record: The system searches for contracts, scheduling agreements, and info records for the material and suggests these. (If info records with more than one purchasing organization exist, all info records of the purchasing organization(s) that is/are responsible for procurement for the requesting plant are also suggested.)
If several outline agreements and perhaps info records exist, all possible sources are offered for selection in a box.
For your case, as Quota Arrangement is still not valid, the system searches for Source List as next alternative for Source selection. Please also check the validity periods in source list also, before considering the Fixed Vendor.
Regards,
Narayana.
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