How You Calculate Default Requisition Allocation

If your negotiation line has backing requisitions, the application generates a default allocation to consume any backing requisitions as efficiently as possible. You can accept this default allocation or modify it as you see fit.

How the Default Requisition Allocation Is Calculated

The requisitions with the earliest Need-by Date are allocated first, followed by requisitions with increasingly later Need-by Dates until the required number of units for the line is allocated. If there are requisitions with the same Need-by Date, the requisition with the earlier creation date is allocated first.

For example, assuming a negotiation with a standard purchase order outcome for 2000 widgets, given the requisition information, the three requisitions would be allocated in the order shown in the table.

The following table shows a sample requisition allocation.

Requisition Number	Need By Date	Creation Date	Quantity
3257894	11/1/2010	6/15/2010	1200
2357198	11/1/2010	6/30/2010	300
3487230	11/30/2010	6/14/2010	500

Suppliers are awarded based first on promised date (standard purchase order negotiations only), then quantity, then price, then response number. For fixed-price services, the first awarded supplier response is allocated. For example, given the response information, the four supplier responses would be allocated as shown (note that the last response is not awarded or allocated its full offer quantity because the negotiation is only for 2000 units).

Supplier Name	Response Number	Promised Date	Quantity	Price
Acme Distributors	57784	8/1/2010	500	$25
Office Supplies Inc.	46798	8/1/2010	500	$75
Midwest Supplies	34189	8/1/2010	250	$20
Premier Supply Company	88346	10/3/2010	1000 (750 awarded or allocated)	$15

You can modify the default allocation as needed. Any unconsumed requisition demand is returned to the requisition pool and becomes available for other negotiations.