Background
A quota arrangement is a method of controlling the sources of supply in a way that is consistent with the arrangements that the company has made. They are described by SAP documentation as follows:
An inbound quota arrangement determines what percentage of a certain product(SNP PPM or PDS and location) will be shipped from a specific source. This procedure is called multi-sourcing. You can make quota arrangements for external procurement and in-house production. Inbound quota arrangements are master data of the supply chain model and are defined in the SAP SCM system.They can also be maintained for all products, per product, per version and, as of SCM 4.1 , per means of transport.You can define quota arrangements for in-house production (PPMs/PDS) by specifying a PPM/PDS. For example, you can define that you want to cover 30%of the demand from location A, 30% from location B, and 40% from PPM/PDS Y. - SCM230
The setup of a quota arrangement is shown below:
What Are They?
This allows you to assign capacity to different vendors. These are called inbound quota arrangements. However there are also outbound quota arrangements. There can also be quota arrangements for individual products and selections. The following categories can be included in a quot arrangement.
- In house production
- Stock transfer
- External procurement
Reasoning for Quota Arrangements
On the face of it quota arrangements seem counterproductive. For instance instead of a quota, SCM could simply chose the lower priced supplier. However, in the real world businesses do choose to engage in these agreements, therefore its important that they are modeled or else the planning output will be reversed by the planners manually and the system will lose credibility. The logic of source determination is in the event of a quota, the quota is selected first, if there is not quota, then SCM goes through a sequence to select the source of supply. This is explained here…
http://www.scmfocus.com/sapplanning/2009/05/05/source-of-supply-in-scm/
Creating the Quota Arrangement (QA)
To create the QA we need to goto the following transaction (/SAPAPO/SCC_TQ1).
This takes us to this screen
However, when we try to process it we are told that the location is not assigned to the model. We try a different location and it works properly, and we are allowed to create our quota.
Requirements Grouping
You can see that we create a quota with requirements grouping of monthly (that is how the requirements are analyzed, you can also choose daily or weekly). Next we need to maintain a min split quantity, and we will choose 5000. We also need to specify a unit of he split which is BPH or galllons per hour (we are selling and managing a wine distributorship in our model).
References
SCM230
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Hi,
I find, while creating a outbound quota arrangement I find no means of transport field but while try creating inbound I find it, can you tell me the differnce of this settings.
Regards,
Deepa Hannah