What is source of supply in SAP SCM-APO - Advanced Planning and Optimization?
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Component: SCM-APO
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Component Name: Advanced Planning and Optimization
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Description: Master data object used to model procurement of a product. Sources of supply are classified according to procurement type: Sources of supply for in-house production production data structures and production process models Sources of supply that are intended for in-house production contain all BOM and routing data that is relevant for production. Sources of supply for external procurement transportation lanes or external procurement relationships In SAP APO, there may be various sources of supply for a product. A source of supply is selected using criteria such as procurement type, procurement costs, or according to its priority.
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Key Concepts: Source of supply is a term used in SAP Advanced Planning and Optimization (SCM-APO) to refer to the source of goods or services that a company uses to fulfill customer orders. It can be a supplier, a manufacturing plant, or even an internal warehouse. The source of supply is used to determine the most efficient way to fulfill customer orders. How to use it: In SAP SCM-APO, the source of supply is used to determine the most efficient way to fulfill customer orders. The system will look at the available sources of supply and determine which one is the most cost-effective and timely option for fulfilling the order. This helps companies optimize their supply chain and ensure that customer orders are fulfilled in a timely and cost-effective manner. Tips & Tricks: When setting up your source of supply in SAP SCM-APO, it is important to consider factors such as cost, delivery time, and quality of goods or services. This will help you ensure that you are selecting the most efficient source of supply for your customer orders. Related Information: SAP SCM-APO also includes other features such as demand planning, inventory optimization, and transportation planning that can help companies optimize their supply chain. Additionally, SAP SCM-APO can be integrated with other SAP modules such as Materials Management (MM) and Sales & Distribution (SD) for
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