| # Purchase Vendor Rating If multiple purchase business partners are available from whom you can purchase raw materials and supplies, you must determine which business partner to use. To make an informed decision, you can use the vendor rating procedure to measure the performance of vendors based on a vendor rating. Objective criteria and subjective criteria can be used to calculate vendor ratings. The objective criteria are ratings generated by LN and only depend on current data and a weighting factor. The subjective criteria ratings are based on data that you specify. The overall vendor rating is calculated by LN. Setting up vendor ratings Before you can use the vendor rating procedure, you must specify the vendor rating parameters, objective scoring schemes, subjective criteria, subjective values, and a classification scheme. Calculating vendor ratings To calculate the vendor ratings after orders are processed and questionnaires are compiled, you must update the vendor ratings. You can do a net update or a full update of the vendor ratings. |