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.