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Vendor Allocation
Vendor Allocation
Vendor Allocation is a feature that allows the automatic assignment of purchase order requests to specific vendors. In order for the system to allocate purchase requisitions to vendors, several criteria must be met:
1. Item requisitions' status must be planned (they must have been generated through Master Scheduling or Requirements Planning),
2 Items requested must have the PO Generation Mode flag on the Part Master set to Y,
3. The requisition must have been generated within the processing dates specified on the Vendor Allocation Request screen.
Submitting a Vendor Allocation Request
Several options are available when submitting a vendor allocation request. Dates may be specified to restrict the time period in which existing requisitions will be processed, the Quota calculation methods can be selected, and the allocation method can be chosen.
Note: The vendor allocation request can be processed multiple times during one period by modifying the beginning and ending dates. However, if you resubmit the vendor allocation request, and changes have been made to the planned quantities, you run the risk that unnecessary requisitions could be created. In other words, changes for the same period cannot be "backed out" if the vendor allocation request has already been processed.
Besides the date limitation, four processing options exist through the combination of Quota Calculation and Allocation choices. The combination selected will determine the percentage that is allocated to the vendors along with the way PO Requisitions are applied to Purchase Orders. The following matrix demonstrates the four combinations; sample calculations will be discussed later.
Processing Options Matrix
Once a request is submitted, the vendor allocation program selects the first ten vendors (sorted by Planned Quantity) associated with each requisitioned item, which has an existing open PO, and will automatically generate purchase order releases for the appropriate amount. These releases will be assigned to existing Purchase Orders.
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