What criterion is considered in the automatic source determination logic when creating a planned order?

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In the context of automatic source determination logic used during the creation of a planned order within an ERP system, the correct criterion relates to quota arrangements. Quota arrangements are used to allocate procurement sources based on predefined ratios or rules when there are multiple potential sources available to fulfill a requirement. By utilizing quota arrangements, the system can determine the optimal source for procurement based on these set rules, ensuring a balanced approach across multiple suppliers.

This method is particularly beneficial when an organization aims to distribute its purchases among various vendors to maintain a healthy supplier relationship and mitigate risks associated with relying too heavily on one supplier. In scenarios with constrained supply or demand fluctuations, quota arrangements also help in strategic sourcing and inventory management.

The other criteria mentioned—such as costs, vendor rating, and component availability—while important in procurement and planning, do not specifically relate to the automatic determination logic during the planned order process. Costs could influence decision-making, but they are not the primary logic driving source selection in this automated context. Vendor rating provides qualitative assessments, whereas component availability relates to stock levels rather than sourcing decisions governed by quotas.

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