Demand pegging overviewDemand pegging is used to designate a quantity of supply to a specific demand. With demand pegging, you can do the following:
To do this, LN links supply orders to demand orders using specifications. If supply is pegged to a specific demand, numerous processes are involved, such as:
Note To use demand pegging, you must set up the master data. For more information, refer to Setting up demand pegging. Using demand pegging When a demand order is created, LN:
Note If the demand order is created manually or from independent demand, specifications are created based on the demand pegging data for the item or the linked terms and conditions agreement. If the demand order is created from dependent demand, the demand order can receive a specification only from the origin that created the order. To see how a specification is transferred between business objects, refer to Demand pegging example. Handling insufficient inventory If insufficient inventory is available to fulfil a demand order, you can create supply orders or allocate inventory. If insufficient allocated or unallocated inventory is present to fulfil the demand order, supply orders are generated or manually created. If a supply order is generated for the demand order, a specification is also generated for the supply order. This specification has the same characteristics as the specification of the demand order. For more information, refer to Demand pegged supply orders. If insufficient allocated but sufficient unallocated inventory is present, inventory is allocated using allocation buffers. The inventory included in an allocation buffer is linked to a specification. Therefore, the buffered inventory is available for demand orders with matching specification criteria. For more information, refer to Allocation buffers. Inventory allocation levels Inventory allocation levels determine whether allocated-to inventory is identifiable and traceable in the warehouse through handling units or merely registered as allocated-to inventory. You can define allocation levels for warehouse - item combinations in the Warehouse - Item (whwmd2510m000) session and the Item - Warehousing (whwmd4100s000) session. For more information, refer to Inventory allocation levels. Changing inventory allocations Changing an inventory allocation is required, for example, if the order for which the inventory is allocated is canceled. To change an allocation, use an allocation change order. Allocation change orders are generated based on a number group and series defined in the Inventory Handling Parameters (whinh0100m000) session. For more information, refer to:
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