Defining Sourcing Rules

You can define sourcing rules that specify how to replenish items in an organization, such as purchased items in plants. Sourcing rules can also specify how to replenish all organizations, as when the entire enterprise gets a subassembly from a particular organization.

If there is a conflict between a sourcing rule and a bill of distribution, the sourcing rule takes precedence. For instance, if you assign a bill of distribution to AUS that tells it to source a part from NYC, AUS can still define a sourcing rule to source the part from SAC. In this case, the local sourcing rule overrides the bill of distribution. See: Defining Bills of Distribution.

To define a sourcing rule:

  1. Navigate to the Sourcing Rule window.

  2. Enter a unique sourcing rule name.

  3. Indicate whether this sourcing rule is used for all organizations (global) or a single organization (local). If the sourcing rule is local, you must enter an organization name; otherwise, your current organization will be the receiving organization.

  4. Choose Copy From to copy the effectivity dates and shipping organization from another sourcing rule into this one.

  5. Enter effectivity dates. You must enter a start date, but entering an end date is optional.

  6. For each range of effectivity dates, you can include multiple shipping organizations. For each shipping organization you want to include, select a sourcing type to specify whether you make, buy, or internally transfer the item. You can also copy a list of shipping organizations from an existing sourcing rule. If you enter a customer organization as the receiving organization, then you cannot select a supplier organization as the shipping organization.

  7. Enter an allocation percentage for each shipping organization. Allocation percentage includes the number of planned orders issued to the part for the entire the planning horizon. Your total allocation may not exceed 100. If the allocation percentage for all the shipping organizations included within a range of effectivity dates equals 100, Planning Active is checked. If the sourcing rule is not planning active, the planning process will not use the rule to assign planned orders.

  8. Enter a numeric rank value to prioritize each sourcing type. If you have two sources with the same allocation percentage, planned orders are sourced from the highest rank first.

  9. Select a shipping method, such as FEDEX, UPS, or rail. (See: Defining Shipping Methods, Oracle Inventory User's Guide.

  10. Save your work.

To copy shipping organizations from an existing sourcing rule

This feature allows you to include long, previously defined lists of shipping organizations without manual entry.

  1. Select a sourcing type to specify whether you make, buy, or internally transfer the item.

  2. Choose Copy Shipping Orgs From.

  3. In the Find window, select a sourcing rule that includes the shipping organizations you want to duplicate in this new sourcing rule.

  4. Choose OK.

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To purge a sourcing rule

  1. Select a sourcing rule name.

  2. Choose Purge.

See Also

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