Allocation Quota Arrangement vs. Splitting Quota Arrangement
Allocation quota arrangement: Generally, every lot is assigned to only one source of supply
Use
By utilizing this procedure, user can assign an exact source of supply to each lot, incase user has not entered a maximum lot size or the maximum release quantity listed in the quota file.
Features
- The assignment is determined utilizing the quota rating. The system then calculates the quota rating by using the following formula:
Quota rating = Quota-allocated quantity (+ quota base quantity) / Quota
- The quota-allocated quantity is hence the total quantity, and this has been procured for the appropriate source of supply up until then.
- User can control the quota arrangement by utilizing the quota base quantity without changing the quota, if, for instance, a new source of supply is to be added to the quota arrangement.
- The quota is defined as a percentage rate which defines that part of an occurring requirement must be taken from a source of supply.
- The source of supply, is the lowest quota rating, receives the complete lot. The quota rating specifies the sequence as per the sources of supply are chosen.
Splitting quota arrangement: One lot is split among the different sources of supply
Use
User can use the splitting quota arrangement for distributing a procurement proposal among the different sources of supply , which is, split them up.
Prerequisites
In the material master ( MRP 1 view), user has assigned a lot-sizing procedure with splitting quotas for the materials are required to be included in this process.
Features
- Order Quantity Calculation, The order quantity is calculated as per to the following formula:
(Quota source of supply X * Requirement quantity) / Total of all quotas
- The quota-allocated quantity of a source of supply or the quota rating is not appropriate for the splitting quota.
- The system divides the requirements as per the sequence which is defined by the quota, that is, the vendor with the highest quota is first selected. The sequence is defined by the quotas is overruled by priorities. This refers that vendors that have been allocated priorities are always first chosen. The quantity, is always calculated as per the formula above using the quotas.
For splitting, determining a Minimum Quantity
The minimum quantity for the splitting quota governs that the lot is required to amount to the minimum quantity (at least) before it can be split.
Incase a requirement is smaller than the minimum quantity, then the system will only select the vendor whose turn it is as per the arrangement of the quota calculation, which is processed based on the allocation quota arrangement procedure and is not divided.
If a requirement quantity has been divided and the remaining quantity leads to a lot which is smaller than the minimum quantity, the system does not divide this quantity. The quantity remaining is assigned to the source of supply with the lowest quota rating.