How can you set up the supply source for the Kanban process in SAP S/4HANA...

In SAP S/4HANA Cloud Private Edition, theKanban processmanages material replenishment using control cycles (transaction PKMC). Supply sources are configured as follows:

Use run schedule quantities for in-house production(A): For in-house production, the Kanban control cycle (PKMC) can specify a production supply area and a production version (MRP 4 view). When a Kanban is set to "Empty," the system generatesrun schedule quantities(planned orders in repetitive manufacturing, confirmed via MFBF), replenishing stock from the production line.

Use stock transfer reservations for stock transfer(B): For stock transfer between storage locations, the control cycle defines a replenishment strategy (e.g., "0002" - Stock Transfer). When triggered, astock transfer reservation(visible in MB23) is created to move stock from a source storage location to the Kanban bin, managed via goods movement (e.g., MIGO).

Use purchase orders for external procurement(C): For external procurement, the control cycle links to a scheduling agreement or contract (ME31K). Setting a Kanban to "Empty" generates apurchase orderor schedule line (visible in ME38), triggering replenishment from the vendor.

Use quotations(D) isn’t a standard Kanban supply source—quotations (ME47) are pre-procurement documents, not direct replenishment triggers.Use purchasing costs for automated source prioritization(E) isn’t a Kanban feature—source selection is manual or via control cycle settings, not cost-based automation. This is per SAP’s Kanban setup documentation.