What is weighting key in SAP MM-PUR - Purchasing?

SAP Term: weighting key

• Component: MM-PUR

• Component Name: Purchasing

• Description: In vendor evaluation the key by which evaluation criteria are weighted according to their importance. For example, the overall evaluation of a vendor is calculated from the scores awarded for the main evaluation criteria "price," "quality," and "delivery." The latter comprises "on-time delivery performance" and "quantity reliability." If you consider a vendor's price to be more important than quality, and quality to be more important than delivery, you can assign weights to the criteria in a ratio of three for price, two for quality, and one for delivery. This ratio is recorded in a weighting key. In vendor evaluation, the scores for different groups of vendors can be determined using different weighting keys.

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• Key Concepts: 
  Weighting key is a feature in the SAP MM-PUR Purchasing module that allows users to assign weights to different criteria when evaluating vendors. This helps to ensure that the best vendor is chosen for a particular purchase. The weighting key can be used to assign weights to criteria such as price, quality, delivery time, and other factors. 
  
  How to use it: 
  To use the weighting key, users must first define the criteria they want to use for vendor evaluation. Then, they must assign weights to each criterion. For example, if price is the most important factor, it should be given the highest weight. Once the weights have been assigned, the system will automatically calculate a score for each vendor based on their performance in each criterion. The vendor with the highest score will be chosen as the best option for the purchase. 
  
  Tips & Tricks: 
  When assigning weights to criteria, it is important to consider all factors that may affect the purchase decision. For example, if quality is more important than price, then it should be given a higher weight than price. Additionally, it is important to review and adjust the weights periodically as needed. 
  
  Related Information: 
  For more information about using the weighting key in SAP MM-PUR Purchasing, please refer to SAP Help documentation or contact your system administrator.