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<ManualTopic ID="/baanerp/cp/onlinemanual/000410" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Sources of supply: production, purchase, or distribution</Title>
		<Keyword><Level1>Selecting supply sources</Level1>
		</Keyword>
		<Keyword><Level1>Supply sources</Level1>
			<Level2>selecting</Level2>
		</Keyword>
		<Keyword><Level1>Date effectivity</Level1>
		</Keyword>
		<Keyword><Level1>Item type</Level1>
		</Keyword>
		<Keyword><Level1>Time dependent sourcing</Level1>
		</Keyword>
		<Keyword><Level1>Sourcing</Level1>
		</Keyword>
	</Header>
	<AimSection><Paragraph>This topic describes how you can determine whether SSA ERP must cover a requirement for a plan item by manufacturing the plan item, purchase the item from external suppliers, or get the item from a warehouse in another site.</Paragraph>
	</AimSection>
	<GeneralSection><SectionTitle>Three sources of supply</SectionTitle>
		<List><ListIntro>Enterprise Planning works with three sources of supply:</ListIntro>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#manufacture" role="enum">Production</GUIRef> – manufacture goods at a production facility</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#purchase" role="enum">Purchase</GUIRef> – acquire goods from a business partner</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#distribution" role="enum">Distribution</GUIRef> – acquire goods from elsewhere in your company or from an <Link href="/baanerp/tc/glossary/glossary#AffiliCompan.tc" role="glossary">affiliated company</Link>
			</ListItem>
		</List>
		<List><ListIntro>You can use the following methods to determine from which source a <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link> is supplied:</ListIntro>
			<ListItem>A plan item's default supply source</ListItem>
			<ListItem><Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategies</Link>
			</ListItem>
		</List>
		<Paragraph>If a plan item has a valid sourcing strategy, SSA ERP ignores the plan item's default supply source.</Paragraph>
	</GeneralSection>
	<GeneralSection><SectionTitle>Default supply source</SectionTitle>
		<Paragraph>If you want a single permanent supply source, a default supply source is enough and you do not need sourcing strategies.</Paragraph>
		<Paragraph>If no valid sourcing strategy is present, SSA ERP checks the value of the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.sour" role="formfield">Default Supply Source</GUIRef> field in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session.</Paragraph>
		<Paragraph>This default supply source is independent of the value that you specified in the <GUIRef href="/baanerp/tc/ibd/tcibd0101s000#tcibd001.kitm" role="formfield">Item Type</GUIRef> field in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session.</Paragraph>
		<List><ListIntro>The <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.sour" role="formfield">Default Supply Source</GUIRef> field can have the following values:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/cp/domains/rpd.sour#distribution" role="enum">Distribution</GUIRef>
			</ListItemHead>
			<ListItem>If the default supply source is <GUIRef href="/baanerp/cp/domains/rpd.sour#distribution" role="enum">Distribution</GUIRef>, <GUIRef href="" role="manual" Update="No">Enterprise Planning</GUIRef> generates only <Link href="/baanerp/cp/glossary/glossary#000049" role="glossary">planned distribution orders</Link>.</ListItem>
			<ListItemHead><GUIRef href="/baanerp/cp/domains/rpd.sour#manpur" role="enum">Production/Purchase</GUIRef>
			</ListItemHead>
			<ListItem><Paragraph>If the default supply source is <GUIRef href="/baanerp/cp/domains/rpd.sour#manpur" role="enum">Production/Purchase</GUIRef>, <GUIRef href="" role="manual" Update="No">Enterprise Planning</GUIRef> searches the <GUIRef href="/baanerp/tc/ibd/tcibd0510m000" role="session">Date-Effective Item Data (tcibd0510m000)</GUIRef> session, and uses the item type specified for the order finish date.</Paragraph>
				<Paragraph>If the default supply source is <GUIRef href="/baanerp/cp/domains/rpd.sour#manpur" role="enum">Production/Purchase</GUIRef> and no valid date effectivity lines are present for the order finish date, SSA ERP falls back on item type that you defined in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session.</Paragraph>
			</ListItem>
		</List>
		<Paragraph>You can use date-effective item data to change an item's <Link href="/baanerp/tc/glossary/glossary#000006" role="glossary">item type</Link> from <Link href="/baanerp/td/glossary/glossary#ManufaItem.td" role="glossary">manufactured item</Link> to <Link href="/baanerp/td/glossary/glossary#000150" role="glossary">purchased item</Link> and vice versa on exactly defined dates.</Paragraph>
	</GeneralSection>
	<GeneralSection><SectionTitle>Sourcing strategy</SectionTitle>
		<Paragraph>Sourcing strategies allow you to use a combination of multiple supply sources at the same time, or one after another.</Paragraph>
		<ExampleSection><SectionTitle>Example</SectionTitle>
			<Paragraph>You can specify that 60% of a requirement is supplied by production orders, 30% by distribution orders and 10% by purchase orders.</Paragraph>
			<Paragraph>You can also specify that SSA ERP must first try to cover the requirements with production orders, and if that is not possible, use purchase orders.</Paragraph>
			<Paragraph>Suppose you want to start to manufacture a component that you used to buy from an outside supplier. Then, you can also specify that SSA ERP must generate purchase orders up to, for example, May 15th, and after that date generate production orders.</Paragraph>
		</ExampleSection>
		<GeneralSection><SectionTitle>The use of sourcing strategies</SectionTitle>
			<Paragraph>If you generate a master plan or planned orders, SSA ERP first searches for a valid <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link> in the <GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef> session.</Paragraph>
			<Paragraph>You can link a sourcing strategy directly to a <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link>, or link the sourcing strategy indirectly, via a <Link href="/baanerp/cp/glossary/glossary#000315" role="glossary">cluster</Link> or <Link href="/baanerp/tc/glossary/glossary#000007" role="glossary">item group</Link>.</Paragraph>
			<Paragraph>If SSA ERP finds no effective sourcing strategy, SSA ERP uses the default supply source.</Paragraph>
			<Paragraph>For more information, refer to <Link href="/baanerp/cp/onlinemanual/000158" role="manual">Sourcing strategies</Link>.</Paragraph>
		</GeneralSection>
		<GeneralSection><Note><SectionTitle>Note</SectionTitle>
				<Paragraph>SSA ERP generates a signal if you define a sourcing strategy for a plan item for which a date effectivity definition exists.</Paragraph>
			</Note>
		</GeneralSection>
	</GeneralSection>
	<GeneralSection><SectionTitle>Relevant sessions and fields</SectionTitle>
		<List><ListIntro>You can set up the date effectivity in the following sessions and fields:</ListIntro>
			<ListItemHead><GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef>
			</ListItemHead>
			<ListItem>Field: <GUIRef href="/baanerp/tc/ibd/tcibd0101s000#tcibd001.kitm" role="formfield">Item Type</GUIRef>
			</ListItem>
			<ListItemHead><GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef>
			</ListItemHead>
			<ListItem>Field: <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.sour" role="formfield">Default Supply Source</GUIRef> (value: <GUIRef href="/baanerp/cp/domains/rpd.sour#manpur" role="enum">Production/Purchase</GUIRef> or <GUIRef href="/baanerp/cp/domains/rpd.sour#distribution" role="enum">Distribution</GUIRef> )</ListItem>
			<ListItemHead><GUIRef href="/baanerp/tc/ibd/tcibd0510m000" role="session">Date-Effective Item Data (tcibd0510m000)</GUIRef>
			</ListItemHead>
			<ListItem>All fields</ListItem>
			<ListItemHead><GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef>
			</ListItemHead>
			<ListItem>Fields: <GUIRef href="/baanerp/cp/rpd/cprpd7110m000#cprpd710.manp" role="formfield">Production</GUIRef>, <GUIRef href="/baanerp/cp/rpd/cprpd7110m000#cprpd710.purp" role="formfield">Purchase</GUIRef>, <GUIRef href="/baanerp/cp/rpd/cprpd7110m000#cprpd710.supp" role="formfield">Distribution</GUIRef>
			</ListItem>
		</List>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000305" role="manual">Supply planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000158" role="manual">Sourcing strategies</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000057" role="manual">To search sourcing strategies</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
