Shortages

After the supplier release schedule is generated and commitments have been entered, the buyer or planner can review the schedule to identify shortages, based on the alerts that the system has issued.

To cover any shortages, the buyer can negotiate with an alternative supplier, if one is available, on quantity, price, and delivery. This negotiation occurs outside of the supplier release scheduling process. As a result, the buyer can enter an ad hoc purchase order, if possible, within the MRP horizon. In this case, you can run MRP again to recognize the quantity on the ad hoc purchase order. When you regenerate the supplier release schedule, the planned quantity reflects the purchase order quantity.

Note: Running MRP again after creating an ad hoc purchase order to cover a shortage is not mandatory, but it is recommended. If you do not run MRP again, the ad hoc purchase order quantity is not accounted for in the supplier schedule generation process and has to be subtracted manually.

Another method for covering shortages is creating a blanket order for the alternative supplier, changing the supplier split percentage to a fixed percentage for the new supplier, and then generating the supplier release schedule again.

See also:

• "Entering Purchase Orders" in the JD Edwards EnterpriseOne Applications Procurement Management Implementation Guide.