Inventory allocation levels

The following inventory allocation levels are available:

• Warehouse
  If receipt lines of supply orders with specifications are confirmed, or allocation buffers are created, the received items and the buffered items become allocated-to inventory. No handling units are generated for these items, therefore, they are not traceable in the warehouse.
• Physical Item

  If receipt lines of supply orders with specifications are confirmed, the received items become allocated inventory. LN generates handling units for the received items, and the handling units obtain specifications with characteristics identical to those of the supply order. The allocated items are identifiable and traceable in the warehouse by means of the handling units and the handling unit specifications.

  In all warehousing procedures, including shipment, inbound and outbound inspections, adjustments and cycle counts, handling units with specifications are used. For example, if outbound advice is created for a demand order, LN advises specific handling units whose specification characteristics match those of the outbound order lines of the demand order.

  However, using this allocation level requires various parameter settings. For more information, refer to Handling unit setup for allocations.

To use allocation level Physical Item, the following setup is required:

• In the Implemented Software Components (tccom0500m000) details session, select the Demand Pegging check box.
• In the Master Data Parameters (whwmd0500m000) details session, select the Handling Units in Use check box.
• In the Item - Warehouse Defaults (whwmd4101s000) session and the Item - Warehouse (whwmd4100s000) session , select the Handling Units in Use check box.

• In the Warehouse - Item (whwmd2510m000) session:

  • To enable the use of handling units in all warehousing processes, select the following check boxes:

    • Handling Units in Use
    • Receipts
    • Inbound Inspections
    • Inventory
    • Outbound Inspections
    • Shipments

  • To automatically generate handling units during the following warehousing processes, select Always or For Ownership/Hard Pegging in the following fields:

    • Generate Handling Units Automatically from ASNs
    • Confirm Receipts
    • Process Adjustments Orders
    • Process Cycle Counting Orders
  • To generate handling units when outbound advice is released, in the Confirm Picking field, select Yes.