Setting Up Sourcing Rules—Exercises

Basic Data Setup

IMPORTANT
It is extremely important that you set up and work within your own site to maintain your data integrity. If you work within any other site, you will compromise your own exercise data as well as the data of other students. Predictable exercise results require that your data be isolated in your own site.

Supplier

Purpose: The purpose of this exercise is to enter a supplier needed in the main exercise.

Windows:
Supplier

  1. Enter the British tire supplier XX-170.

General exercise for Enter Supplier

Main Exercise

Purpose: The purpose of this exercise is to show you how to create different sourcing rules. 

Windows:
Sourcing Rule

This sourcing rule forces the automatic sourcing to choose between all internal suppliers (connected to the purchase part), and to create a customer order line with the supply code Int Purch Trans. That is, the goods will be delivered from the internal supplier via your site to the customer.

  1. Open the Sourcing Rule window.
  2. Enter a sourcing rule and an appropriate description for any internal supplier, which will be used to deliver via your site, XX-AIT.
  3. In the Source Set tab, enter the supplier selection method Any Internal Supplier Transit, and  priority 1.
  4. In the Sourcing Objective tab, enter sequence number 1, and the criterion Shortest Distance. This implies that if several suppliers can deliver on time, the one with the shortest distance will be selected.

This sourcing rule directs automatic sourcing to choose an internal supplier (connected to the purchase part), and to create a customer order line with the supply code Int Purch Dir. That is, the goods will be delivered directly from the internal supplier to the customer.

  1. Enter a sourcing rule and an appropriate description for any internal supplier, which will be used to deliver directly from the supplier to the customer, XX-AID.
  2. In the Source Set tab, enter the supplier selection method Any Internal Supplier Direct and  priority 1.
  3. In the Sourcing Objective tab, enter sequence number 1 and the criterion Least Expected Additional Cost. This implies that if several suppliers can deliver on time, the one with the least expected additional cost will be selected. 

This sourcing rule directs the automatic sourcing to simply create a customer order line with the supply code Invent Order. That is, the goods will be delivered from your site's inventory to the customer.

  1. Enter a sourcing rule and an appropriate description for deliveries from your site's inventory XX-IO.
  2. In the Source Set tab, enter the supply code Invent Order and priority 1.
  3. In the Sourcing Objective tab, enter sequence number 1 and the criterion Highest Priority.

This sourcing rule directs automatic sourcing to simply create a customer order line with the supply code Purch Order Trans, with delivery from supplier XX-170 via your site to the customer.

    1. Enter a sourcing rule XX-PT and an appropriate description.
    2. In the Source Set tab, enter the supply code Purch Order Trans, supplier XX-170, and priority 1.
    3. In the Sourcing Objective tab, enter sequence number 1 and the criterion Highest Priority. 

Note: As you understand, it is possible to enter an enormous amount of different sourcing rules. In this exercise you have just entered a few.