You use quota arrangements. You include a new supplier in an existing quota system. How can you ensure that the new supplier is considered as if they had been part of the quota arrangement from the…

Question

Options

• AManually update the source list
• BManually update the quota-allocated quantity
• CManually update the quota base quantity
• DManually update the quota

• A
  10% (3)
• B
  6% (2)
• C
  81% (25)
• D
  3% (1)

Explanation

Updating the quota base quantity for the new supplier is the correct mechanism because this value is added to the quota-allocated quantity when the system calculates each source's quota rating ((allocated qty + base qty) / quota). By setting an appropriate base quantity, you artificially raise the new supplier's rating to match what it would have been had they participated from the start, preventing the system from over-favoring them simply because they have zero history.

• A (Source list) is wrong because the source list controls which suppliers are valid sources, not how quota is distributed among them - updating it adds the supplier but does nothing to balance their historical standing.
• B (Quota-allocated quantity) is wrong because this field is maintained automatically by the system as actual purchase orders are created; it reflects real procurement history and is not the intended field for manual balancing adjustments.
• D (Quota) is wrong because the quota defines each supplier's future share (e.g., 30% vs. 70%), not their historical accumulation - changing it skews the intended split rather than leveling the starting position.

Memory tip: Think of the base quantity as a "head start" you give the new supplier - like spotting someone points in a game so they're competitive right away. Base = balance the baseline.

No community discussion yet for this question.