In which sequence does the system search for a valid source of supply during manual purchase requisition creation?

The system searches for a valid source of supply during manual purchase requisition creation in a specific order that reflects the priority of each source. The correct answer indicates that the system first evaluates Quota Arrangements. Quota arrangements allow a buyer to allocate the total requirements to several suppliers to ensure a balanced purchase distribution among them. If no valid quota arrangement exists or if it does not meet the criteria, the system then searches the Source List. The Source List is a predefined list of suppliers who are approved or recommended for a specific material, enhancing sourcing efficiency. Finally, if neither of the first two avenues yields a valid source, the system checks the Outline Agreement, which consists of long-term agreements with specific terms and conditions for procurement but may be less frequently utilized compared to the more immediate options of quota arrangements and source lists.

This sequence reflects the hierarchy of sourcing strategies, where quota arrangements often take precedence as they are tailored to ensure supplier engagement fairly and effectively. The selection order is vital for ensuring that procurement processes adhere to pre-established sourcing strategies, thus fostering cost-effective and reliable supply chain management.