For which business scenario, we will suggest source list and Quota arrangement?

19.Question: For which business scenario, we will suggest source list and Quota arrangement?

Answer: Source list:

We will suggest the source list in terms of agreement-based purchasing.

For specific plants, they require material from only approved vendors, then we will suggest source list as mandatory for plants.

When there is a requirement to block single material/single vendor then we can suggest source list to use.

Forecast based MRP planning- Check

Quota arrangement:

When they are using MRP run with multiple vendors, then its better to go with Quota.

Even in terms of agreement also they can go with quota arrangement, because there will be lot of savings and dependency will not there on single vendor.

Mostly, when we are working with multiple vendors scenario.