7 Contracts

Contract batch modules create purchase orders from contracts and purge obsolete contracts. There are four types of supplier contracts in Merchandising: A, B, C, and D.

• Type A (Plan/Availability): The contract contains a plan of manufacturing quantity by ready date. Supplier availability is matched to the ready date. Orders are raised against the plan as suggested by replenishment requirements, provided there is sufficient supplier availability. You can also raise manual orders.

• Type B (Plan/No Availability): The contract contains a plan of manufacturing quantity by ready date and dispatch-to location or locations. There are one or more ready dates, which is the date that the items are due at the dispatch-to location. Supplier availability is not required. Orders are raised automatically from the contract based on ready dates.

• Type C (No Plan/No Availability): The contract is an open contract with no production schedule and no supplier availability declared. The contract lists the items that are used to satisfy a total commitment cost. Orders are raised against the contract based on replenishment requirements. The retailer can also raise manual orders.

• Type D (No Plan/Availability): The contract is an open contract with no production schedule. The supplier declares availability as stock is ready. The contract lists the items that are used to satisfy a total commitment cost. Orders are raised against the contract, based on replenishment requirements and supplier availability. The retailer can raise manual orders.