What is quota arrangement in SAP SCM-APO-MD - Master Data?

SAP Term: quota arrangement

• Component: SCM-APO-MD

• Component Name: Master Data

• Description: Percentage specifying which proportion of the required quantity of product is to be procured from a source of supply incoming quota arrangement or supplied to a location outgoing quota arrangement. Quota arrangements can be defined as either version-dependent or model-dependent, and as either product-dependent or product-independent. Quota arrangements are defined for a certain area of validity. Incoming quota arrangements can be defined for the following source of supply types: Locations transportation lanes External procurement relationships In-house production production process models, iPPE access objects, or production data structures Outgoing quota arrangements can only be created for locations.

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• Key Concepts: 
  Quota Arrangement is a feature of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) module. It is used to define the quantity of a product that can be supplied from a particular source to a particular destination. It is used to ensure that the right amount of product is available at the right time and place. 
  
  How to use it: 
  Quota Arrangement can be used to define the quantity of a product that can be supplied from a particular source to a particular destination. This can be done by setting up a quota arrangement in the SCM-APO-MD Master Data module. The quota arrangement will specify the quantity of product that can be supplied from each source to each destination. 
  
  Tips & Tricks: 
  When setting up a quota arrangement, it is important to consider the capacity of each source and the demand for each destination. This will ensure that the right amount of product is available at the right time and place. 
  
  Related Information: 
  Quota Arrangement is related to other features in SAP's SCM-APO-MD Master Data module, such as Product Allocation and Product Availability Check. These features are used to ensure that the right amount of product is available at the right time and place.