What is source determination in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: source determination

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Method that determines feasible sources of supply based on application-specific data. It uses a number of different criteria, such as quota arrangements, procurement priorities, or costs, as a basis for producing a ranked list of sources, from which the desired source is then chosen. In interactive planning, the source is chosen from this ranked list by the user; in automatic planning, the system chooses using a heuristic for instance. In the case of third-party order processing, source determination determines a source location supplier based on valid contracts or scheduling agreements. The goods are then sent from the supplier to the destination location customer.

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• Key Concepts: 
  Source determination is a process in SAP Supply Network Planning (SNP) that helps to determine the best source of supply for a given demand. It takes into account factors such as cost, availability, and delivery time to determine the most suitable source. The source determination process can be used to identify the most cost-effective supplier for a given demand, or to identify the supplier with the shortest delivery time. 
  
  How to use it: 
  Source determination is used in SAP Supply Network Planning (SNP) to identify the best source of supply for a given demand. The process takes into account factors such as cost, availability, and delivery time. To use source determination, users must first define the criteria for selecting a source, such as cost or delivery time. Once these criteria have been defined, the system will automatically select the most suitable source based on these criteria. 
  
  Tips & Tricks: 
  When using source determination in SAP Supply Network Planning (SNP), it is important to ensure that all relevant criteria are taken into account when selecting a source. For example, if cost is the primary criterion, then other factors such as availability and delivery time should also be considered. Additionally, it is important to ensure that all sources are evaluated on an equal basis in order to ensure that the best source is selected. 
  
  Related Information: 
  Source determination is an important part of SAP Supply Network Planning (SNP). For more information on how to use source determination in SNP, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information on how to use source determination in SNP.