Creating Order Proposals System Functions in a Planning Run

During lot sizing, the system determined the quantities needed to cover requirements. It then determined the dates for the order proposals. Now, it must decide whether the receipt should be carried out via in-house production or external procurement. This decision depends on the following factors:

• procurement type

You determine the procurement type by maintaining the material type in the material master record. The system uses this entry to determine which of the following is valid for this material:

• in-house production
• external procurement
• both in-house production and external procurement

If the procurement type is not clearly specified, the system automatically selects in-house production.

• quota arrangements

If the material participates in the quota arrangement, the specification of the procurement type and the special procurement type are additionally determined via the source of supply.

For materials procured via in-house production, the system automatically creates planned orders (when creating the order proposal.)

For materials acquired via external procurement, the system either creates a planned order, which you can then convert into a purchase requisition, or it can create a purchase requisition immediately. This is specified by the creation indicator for purchase requisitions.

If the system is to create a planned order for materials that are acquired via external procurement, this means that the MRP controller has more control of the order proposals. Only once he has checked and converted the planned order into a purchase requisition can the purchasing department order the material. Otherwise, the purchase requisition is available for the purchasing department immediately, and it then takes over the responsibility for material availabiliy and warehouse stocks.

If a delivery schedule exists for a material and if an entry has been maintained in the source list, which is relevant for requirements planning, then the system can automatically create delivery schedules during the planning run. You control this by means of the creation indicator for delivery schedules in the initial screen of the planning run.

For the order proposals determined by the system for externally procured materials, you can use the source list or the quota arrangement to determine sources of supply. A source of supply is, for example, a vendor or an outline agreement (for example, a delivery schedule).

Determining the Source of Supply for Purchase Requisitions

Determining the Source of Supply for Delivery Schedules

• Supply Source Determination for Retail Order Propo...
• Determining the Source of Supply for Delivery Sche...
• Determining the Source of Supply for Purchase Requ...
• Creating Order Proposals System Functions in a Pla...
• Forward Scheduling for External Procurement
• Backward Scheduling for External Procurement
• Scheduling System Functions in a Planning Run
• Additional Restrictions Optimum Lot-Sizing Procedu...