Determining sourcing strategy for the required part
When the requested quantity of the part is more than the available quantity, the system automatically determines the sourcing strategy for the part. Based on the Demand & Receipt Pegging Preferences defined in the Set Options activity of the Stock Demand Management component, the system displays the sourcing strategy as,
Alternate Stock Status, if
1) The Alternate Stock Status has the highest priority among the Demand & Receipt Pegging Preferences and
2) The available quantity of the part in the alternate stock status is more than the required quantity of the requested part or
3) The required quantity of the part in alternate stock status is not available and the required quantity of the alternate part is available in the warehouse.
Alternate Part, if
1) The Direct Alternatives has the highest priority among the Demand & Receipt Pegging Preferences and
2) The available quantity of the alternate part is more than the required quantity of the requested part or
3) The required quantity of the alternate part is not available and the quantity of the part in the alternate stock status is more than the requested quantity .
Alternate Warehouse, if
1) The quantity of the part in the alternate stock status as well as and the quantity of the alternate parts proves insufficient for the requirement and
2) The alternate warehouses hold the requested quantity of the part in alternate stock status or the adequate quantity of alternate parts.
Note that the search in the other warehouses for the requested quantity of the part also happens by the same order as set for the Demand & Receipt Pegging Preferences.
Procurement, when all the above-explained sources do not satisfy the part requirement.