Scenario: Using Sourcing Optimization and Constraints

Scenarios are examples of how to use some of the features within PeopleSoft Strategic Sourcing. These real-life examples describe some of the intended uses of these features, enabling you to understand how these features might be applied to your own organization.

Note:

The real-life scenarios described within this documentation may not conform to the business rules and procedures within your organization. Do not construe these examples as consulting or implementation advice for your specific industry or your individual organization. You should adapt or disregard the information here based on the needs of your organization. Oracle does not guarantee that the information included here will work as intended within your environment.

This scenario demonstrates how you can use sourcing optimization and constraints. The objective is to demonstrate how the system can determine an ideal award based on bid information as well as business policies that are associated to the event. Our scenario will use this criteria:

Event US001-COMPUTERS – Computer Equipment Purchase has been setup in the demonstration environment to use as an optimization example. It's a four line event that also has one user defined line group as well as bidder-defined groups. Optimization will look at the line group pricing, cost or score and factor that into the award recommendation. Three event constraints associated with the event:

• Credit Score – bidders with a credit score of 25 or less may receive a maximum of 25 percent of the total event award

• Minority Owned Business – at least 15 percent of the total event award must be awarded to minority owned business bidders.

• Past Experience – only 20 percent of the total event award may be awarded to bidders with a poor or below average rating.