What is source of supply priority in SAP (SRD-SCM-MD - SCM-Master Data)?

SAP Term: source of supply priority

• Component: SRD-SCM-MD

• Component Name: SCM-Master Data

• Description: The order that the system uses when more than one source of supply is valid to fulfill demand. This demand can be satisfied from either external procurement or from in-house manufacturing. The order of the variables that the system uses to fulfill demand are: 1. Internal against external source 2. Lot size 3. Source of supply priority for release planning models 4. Source of supply validity

AnswerBot for ERP

• Key Concepts: 
  Source of supply priority is a feature in SAP that allows users to prioritize the sources of supply for a material. This feature is used to determine which source of supply should be used when fulfilling a customer order. The priority of the source of supply is determined by the user and can be changed at any time. 
  
  How to use it: 
  To use source of supply priority, users must first define the sources of supply for a material. This can be done in the SAP system by navigating to the “Source of Supply” tab in the material master data. Once the sources of supply have been defined, users can then assign a priority to each source. The priority can be set from 1 (highest) to 9 (lowest). 
  
  Tips & Tricks: 
  When setting up source of supply priority, it is important to consider the cost and availability of each source. For example, if one source is more expensive but more reliable, it may be worth assigning it a higher priority than a cheaper but less reliable source. 
  
  Related Information: 
  Source of supply priority is part of SAP’s Supply Chain Management (SCM) module. It is closely related to other features such as vendor selection and product availability checks. Understanding how these features work together can help users optimize their supply chain processes.