2.4 Request Replenishment & Services Costs Estimate

AS per Clarification Memo named "http://www.unhrd.org/docs/Clarification-Memo-and-Detailed-Procedural-Guide-on-Various-UNHRD-Issues.zip%7C[UNHRD Procedures for Billing, Ad Hoc Vendors/ Customers and Related Issues]" 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.

B. For services handled internally, UNHRD's standard price list per Hub applies. It should be noted that each Hub is responsible for maintaining their own price lists, including periodic review of such services and their prices. Updated price lists for each Hub should be posted in the Restricted area of the UNHRD website.

C. The PI/quotation value shall not be applied net of the safety margin, unless under exceptional circumstances, and only upon prior approval by the Network Coordinator.