Referring to the graphic, which planned order results will be created to satisfy this demand?

You have a new demand for 800 units of a product. SourceRule.AllotmentRule for this part is set to OnGoing.

Referring to the graphic, which planned order results will be created to satisfy this demand?
A . Supplier1: quantity 250
Supplier2: quantity 750
B . Supplier1: quantity 750
Supplier2: quantity 250
C . Supplier1: quantity 1000
D . Supplier2: quantity 1000

View Answer

Answer: A

Explanation:

Referring to the graphic, it appears that there is a target allocation ratio between Supplier 1 and Supplier 2 (not visible in the image, but this can be inferred from the allocation quantities). When a new demand for 800 units is introduced, the SourceRule.AllotmentRule set to OnGoing will distribute the demand based on the ongoing target ratio. Since Supplier 1 has a running total that far exceeds Supplier 2, and both have a ‘Multiple Qty’ of 250, the next allotment will attempt to balance the ongoing total closer to the target ratio. It’s likely that the new demand will be allocated by filling up to the nearest multiple of 250 that does not exceed the demand. Therefore, Supplier 1 gets 250, and the remaining 550 units would go to Supplier 2. Since Supplier 2 also must supply in multiples of 250, it rounds up to 750 units.

ReferencesThis understanding is derived from the Kinaxis RapidResponse concepts for managing supply allocations and the behavior of ongoing rules as described in the Kinaxis RapidResponse documentation.

References:

The Kinaxis RapidResponse documentation on SourceRule.AllotmentRule indicates that ongoing allotment is based on the target ratios set for suppliers1.

The Certified RapidResponse Author Level 3 materials cover the configuration and implications of SourceRule.AllotmentRule settings2.