What is fair share rule in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: fair share rule

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Fair share distribution method used within deployment if demand exceeds supply. There are the following four different fair share rules: Fair share rule A distributes the stock proportionally to all demand locations based on the planned distribution demand. Fair share rule B increases the stock levels at all demand locations to approximately the same percentage of the target stock level. Fair share rule C distributes stock according to the quota arrangements defined at the demand locations. Fair share rule D distributes stock according to the priorities that were defined at the source location's outbound transportation lanes.

Smart SAP Assistant

• Key Concepts: 
  The fair share rule is a feature of SAP Supply Network Planning (SNP) that helps to ensure that all suppliers in a supply chain receive a fair share of orders. It works by assigning orders to suppliers based on their capacity and availability, rather than on a first-come, first-served basis. This helps to ensure that all suppliers are treated fairly and that orders are distributed evenly. 
  
  How to use it: 
  The fair share rule can be enabled in the SNP configuration settings. Once enabled, it will automatically assign orders to suppliers based on their capacity and availability. This ensures that all suppliers receive a fair share of orders, regardless of when they were added to the supply chain. 
  
  Tips & Tricks: 
  When using the fair share rule, it is important to ensure that the capacity and availability of each supplier is accurately reflected in the SNP configuration settings. This will ensure that orders are assigned correctly and that all suppliers receive a fair share of orders. 
  
  Related Information: 
  The fair share rule is just one of many features available in SAP Supply Network Planning (SNP). Other features include demand planning, supply planning, and inventory optimization. All of these features work together to help ensure an efficient and effective supply chain.