Batch Allocation

This document explains how to manage batch allocation for all types of orders including manufacturing, distribution, customer, and requisition orders. The purpose of batch allocation is to share stock when there is a shortage. You can do this either by allocating stock according to priorities or distributing a fair share among all selected order lines or by using a combination of allocation priority and fair share for the allocation priority group where the allocatable net cannot fulfill the required quantity.

Example: At the end of the month you want to ship goods, but there is a stock shortage for some items. The existing stock of these items must be shipped to the most important customers. The batch allocation function enables you to de-allocate items from existing orders and to reallocate them to prioritized customers according to user defined rules.

Outcome

Stock allocations are distributed according to priorities or a fair share transferred to each requirement.

Batch allocation is used for allocating stock to requirements when there is a stock shortage. It is also used when more control is needed over which requirements get the stock than is possible by using automatic allocation.

Allocating as late as possible leaves stock free for other orders.

As an outcome of this process, the following changes are made in M3:

Before you start

The settings for batch allocation must be defined. For further details, refer to these documents in the see also section:

Batch allocation workflow

  1. On the E panel, select 'Order lines'

    In 'Allocation. Distribute Quantities' (MMS189), select the Items and Style numbers that should be de-allocated.

    It is possible to use the dynamic selection ID field in addition to the normal selection fields (From and To) in (MMS189/E), in order to set up more complex selection rules. The records are filtered by using the rules set up by the regular selection fields (From and To) first and the result of that filtration is filtered once more by the rules set up with the dynamic selection ID. The dynamic selection ID field is visible in (MMS189/E) if (MMS189) is opened with the B panel and a report version is selected. The field is not visible if the E panel is used as the opening panel.

  2. On the F panel, select Distribution Method

    Select 'Distribution method', which indicates whether distribution should be a calculated percentage of the selected order's quantity (equal share) or should be according to allocation priority and allocation order (priority). The third method how to perform the distribution is according to allocation priority with fair share

  3. Select 'Allocation priority hierarchy'

    If you selected allocation priority in step 2, then you should also select 'Allocation priority hierarchy'. This field controls the sequence in which item requirements are reallocated. If distribution method allocation priority with fair share is selected in step 2, the first allocation priority hierarchy must be set to allocation priority model.

  4. Activate/deactivate batch allocation limits

    Select if batch allocation limits should be applied, i.e. adjust allocated quantity according to the minimum and maximum limits setup in 'Allocation Min/Max Limits Sel Table. Open' (MMS154).

  5. Activate/Deactivate the 'Include SCO' check box

    Select whether included demand order lines with supply chain order (SCO) connections should be included in the batch allocation run. If the setting 'Include SCO' is activated, this means that demand order lines with existing SCO links are included in both deallocation and allocation according to settings for the specific run.

    Note: This is only applicable for SCO links with the setting 'Link existing order' that has value 1 or 2 on the supply chain policy.

The following is done automatically in (MMS190) and (MMS191)

  1. De-allocate selected order lines

    Order lines that contain the selected items and style numbers are de-allocated. Allocation stop is added to prevent autostart job from allocating in conflict with the batch run. Allocation stop is removed at end of batch run.

  2. Redistribute allocations to selected order lines

    De-allocated items and style numbers are redistributed to allocation according to batch allocation rules.

  3. Allocate selected order lines

    Selected items and style numbers are allocated to order lines according to batch allocation rules.

    Allocation is performed in 'Manage Allocation' (MMMNGALO). This updates balance IDs, order lines and the material plan. The order status for a completely allocated order is 33.

    If the setting 'Include SCO' is activated, the SCO links for the demand order line will be updated at the end of allocation. Since a completed allocation will reduce the pre-allocated quantity for the demand, it is important to update SCO links so that the supplied quantity is made available for other demand order lines with the same item/warehouse.

    Note: Order lines with an overriding allocation method not equal to 0 (equal to 1, 2 or 3) will not be affected for batch allocation via (MMS189). The result will be that if the line has a quantity of 0 allocated and the overriding allocation method is 1, 2 or 3, then batch allocation will not increase the allocation regardless of how much stock is available.

    The 'Overriding allocation method' (NOAA) field setting is located in 'Allocation. Perform Detailed' (MMS121/B1).

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