Creating Source Rules for Planned Orders

You can set up rules that automatically split planned purchase orders for a purchased item or a product code between multiple vendors. The quantity requested from each vendor depends on the percentage specified for that vendor in the source rule. You can also define rules that split planned transfer orders for a certain item or product code between multiple sites/warehouses.

On the Source Rules form:

Specify a unique Source Rule ID and description.
Specify either an item or a product code to be sourced:
- If you specify an item, the source that is defined for the item defaults into the Source field and cannot be changed.
- If you specify a product code, you can select a Source: either Purchased or Transferred. For example, if you select Purchased, the rule applies only to items with this product code where the item's Source is set to Purchased.
Optionally, specify an Effective Date and/or an Expiration Date for which the rule will apply.
If the Source for the rule is Purchased, use the Purchased grid to specify the vendors to use and the percentage each vendor will provide.
If the Source for the rule is Transferred, use the Transferred grid to specify the site and warehouse, and the percentage each site/warehouse will provide.

In the Material Planner Workbench Generation form, the source rules are consulted when Source for the item is set to Purchased or Transferred. The rules are consulted no matter which of the three modes is used (Use Planned Data, Item Replenishment/Inventory Below Safety Stock, or Cross-Reference). This is the sequence:

If a source rule exists for the item or the product code, and if the Release Date Order of the planned purchase order or transfer order falls into the effective date range and before any expiration date specified for the rule, then the planned order is split according to the percentages in the rule.
If no appropriate source rule exists for a planned purchase order, the system uses the vendor rankings from the Vendor Contracts form to determine the vendor, and creates one PO for the entire quantity (or it creates a replenishment purchase order if there is a standing replenishment order).
If no appropriate source rule exists for a planned transfer order, the system generates the standing replenishment transfer order, if it exists. Otherwise, it generates a transfer order with the default site/warehouse.

You can override an existing source rule by creating a purchase order manually, or by overwriting the vendor in the planned demand.