Supplier Evaluation Examples

1. Supplier Evaluation Transaction Calculation Example:
Purchasing ManagementTransactions Supplier Evaluation
Example 1:

Supplier Evaluation Criteria:

Sub Criteria:

Sub Criterion Value Assignment:

For example you want to see the supplier evaluation of the XXX coded supplier between 01/10/2006 and 01/01/2007 dates, that you supply Material_001 from, by considering the criteria above.
The values of the criteria within the specified period range are calculated.
Period 1:
Quality:
1- Nonreturnable Performance Max. Return Rate: The maximum value of the return transaction for the material_001 in the period selected for the XXX_AR/AP is calculated.
Suppose that the maximum value is 35,
Max. value 35 is between 10 and 50 values. The calculated max. value is rounded to its nearest value. So, for 35, 70 points will be assigned that is defined for 50.
Because "Nonreturnable Performance Max. Return Rate" owns a 25% piece in quality, the calculation is done as follows:
The point calculated for Nonreturnable Performance Max. Return Rate: A
A= 70 x25 /100 = 17,5 points
2- Nonreturnable Performance Average Return Rate: The average value is calculated of the return transactions to the AR/AP_XXX for the material_001 in selected period.
Suppose that the average value is 11,8,
The average value 11,8 is between 10 and 15 in the example. The calculated max. value is rounded to its nearest value. So, for 11,8 value, 60 points will be assigned that is defined for 15.
Because "Nonreturnable Performance Average Return Rate" owns a 75% piece in quality, the calculation is done as follows:
The point calculated for Nonreturnable Performance Max. Return Rate: A
A= 60 x75 /100 = 45 points
3- The total point that will be calculated for the quality is the point total that is calculated for the sub criterion.
Quality = Max. Return Rate + Average Return Rate
Quality = 17,5 + 45 =62,5 points.
4- The Quality effects the supplier evaluation transaction 25%.
Quality main point calculation for the supplier evaluation:
Quality Main Point = Quality Point x (Rate%)
Quality Main Point = 62,5 x 25/100 = 15,625 points
5- If we suppose that the other main criterion's main points will be calculated as above:
Delivery: 45 points
Price: 20 points
Total: 15,625 + 45 +20 =80,625 points
6- For XXX coded supplier's Material_001, the supplier evaluation point is 80,625 over 100 in 1st period.
Example 2:

• If the account range is given in the filter lines the grading calculation is done for the accounts in that specified range separately.
• If "Material Dependent" option is not approved, all the materials in specified range generate one transaction and all the transactions that the AR/AP has done with that materials are controlled and calculation is done after these materials are evaluated.
• If "Material Dependent" option is approved and a range is specified for the materials, the calculation has to be done for each material separately.
  3. Price Standard Deviation Rate Calculation Example:
  Example 3 :
  

  Supplier Evaluation Transaction
  Filter:
  Date	20/10/2006	20/01/2007
  Supplier Code	AR/AP_XXX	AR/AP_XXX
  Material Depended	Ye . Yes
  Material Code	Material_001	Material_001
  Variant Code
  QuitNext

  
  STLINE transactions are selected according to the data of the supplier evaluation transaction filters.
  Suppose that the filters are selected as below,
  
  

  Date (STLINE DATE)	Material (STLINE ITEMREF)	Amount (STLINEamount)	Unit (STLINE UOMREF/UOMSETREF)	Total (STLINETOTAL)
  20.12.06	Mlz_001	16	Package	800
  25.12.06	Mlz_001	70	Unit	840
  01.01.07	Mlz_001	10	Package	750
  17.01.07	Mlz_001	100	Unit	121

  
  All the material transactions are calculated over main unit.
  Defined units for the Material_001:
  1 Unit= 1 Unit Main Unit
  5 Units= 1 Package
  

  Date (STLINETRANSDATE)	Amount (Amount in Main Unit)	Unit (STLINE UOMREF/UOMSETREF)	AMOUNT (STLINETOTAL)
  20.12.06	80	Unit	800
  25.12.06	70	Unit	840
  01.01.07	50	Unit	750
  17.01.07	100	Unit	121

  
  The unit price in main unit is calculated by dividing the TOTAL value in line to the quantity that is converted to main unit.
  

  Date (STLINETRANSDATE)	Amount (Amount in Main Unit)	Unit (STLINE UOMREF/UOMSETREF)	TOTAL (STLINETOTAL)	Unit Price in Main Unit
  20.12.06	80	Unit	800	10
  25.12.06	70	Unit	840	12
  01.01.07	50	Unit	750	15
  17.01.07	100	Unit	1100	11

  
  All transactions' TOTAL values are added up in STLINE.
  800 + 840 + 750 + 1100 =3490
  The amounts that are converted to main unit type are added up.
  80 + 70 + 50 +100 = 300
  Average price is calculated by dividing the amount totals to quantity totals.
  3490/300 = 11,63
  The difference between the unit price (calculated over main unit) and average unit price is calculated.
  

  Date (STLINETRANSDATE)	Average Price	Unit Price in Main Unit	Price Difference:
  20.12.06	11,63	10	-1,63
  25.12.06	11,63	12	0,39
  01.01.07	11,63	15	3,39
  17.01.07	11,63	11	0,63

  
  According to these info the standard deviation is calculated for the price.
  Standard Deviation Calculation:
  X₀: The unit price value calculated for the main unit in lines.
  X: Average Unit Price
  n : Number of Lines
  
  ∑(x₀-x)² = (-1,63) ²(0,39) ²(3,39) ²(0,63)²=(2,6569)(0,1521)(11,4921)(0,3969)=14,698
  ∑(x₀-x)² / n-1= 14,6989/3=4,89
  √4,89= 2,21 standard deviation