What is location source of supply in SAP SCM-IBP - Integrated Business Planning?

SAP Term: location source of supply

• Component: SCM-IBP

• Component Name: Integrated Business Planning

• Description: A master data object that determines how net demand for a product at a location for example, plant or distribution center is to be satisfied. A location source of supply describes a stock transfer. It provides the following information: Locations involved in the stock transfer ship-from location and ship-to location Lead time for transferring the product to the ship-to location Percentage of the demand that can be supplied by the ship-from location only relevant for the supply planning heuristic

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• Key Concepts: 
  Location source of supply is a term used in SAP's Integrated Business Planning (IBP) component. It is a way to define the source of supply for a particular location. This source can be either an internal or external supplier, and it is used to determine the most cost-effective way to fulfill customer orders. 
  
  How to use it: 
  In order to use the location source of supply feature, you must first define the sources of supply for each location. This can be done in the IBP configuration settings. Once the sources of supply have been defined, you can then assign them to specific locations. This will allow you to determine which supplier is best suited for fulfilling orders from that particular location. 
  
  Tips & Tricks: 
  When defining sources of supply, it is important to consider factors such as cost, delivery time, and quality. This will help ensure that you are selecting the most cost-effective and reliable supplier for each location. Additionally, it is important to regularly review and update your sources of supply as needed in order to ensure that they are still the best option for fulfilling customer orders. 
  
  Related Information: 
  For more information on using the location source of supply feature in SAP's IBP component, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_IBP/6.2/en-US/f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a9f3d7f9a8b7c14e8a90/.