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Dec 30, 2010 at 06:36 AM

Tricky configuration question in Quota Arrangement

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MM Gurus: I have question on Quota arrangement. Hoping to get an answer for this.

This is the scenario. My company is a contract manufacturer specializing in die casting. They are flexible with their customer. They can take any number of customer order per month. They run increased shifts to ramp up the production. They have vendors, say A and B from whom they get the semi finished product. My company maintains a long term relationship with the Vendor A. Vendor A have some capacity issue and can supply say only 1000 sku per month and they charge $ 10 per item. On a specific month, if the number of items in the customer order goes beyond 1000, they use vendor B to procure the remaining finished material . B charges $ 14 per item since he is flexible. I want to automate the procurement in such a way that when PR is raised for the first 1000 items, Vendor A should be chosen and for anything above that Vendor B should be selected automatically.Can I use quota arrangement.? How can I configure this using quota arrangements. The client is not willing to use APO or any planning software and wanted to do it in SAP. Can you help me with this.