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 or inventory to demand orders using specifications. If supply is pegged to a specific demand, numerous processes are involved, such as:
Using demand pegging When a demand order is created, LN:
Note
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. Note
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 Item Data by Warehouse (whwmd2510m000) session and the Item - Warehousing (whwmd4600m000) 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. You can view and maintain allocation change orders in the Allocation Change Orders (whinh1120m000) and Allocation Change Order Lines (whinh1130m000) sessions.
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