2.4 Request Replenishment & Services Costs Estimate
In order to ensure UNHRD's long-term financial sustainability whilst simultaneously quoting fair and unbiased prices to our customers, a hierarchy of pricing mechanisms has been established. There are three aspects that need to be managed, namely:
A. Prices for goods and external services are to be based on the following (in the order of preference listed below):
1. PO value/price (replacement/replenishment cost)
2. LTA price (in the absence of a PO price, e.g., especially if finalising tender/creating PO is expected to take some time) or
3. MAP, i.e., the Moving Average Price automatically calculated by the system (in the absence of 1 and 2 above) – this method is applicable only for Inventory items.