Allocated or unallocated inventory in the outbound process

To enhance flexibility in the outbound process, you can allow unallocated inventory or inventory with a different specification to be advised for a demand pegged outbound order line.

If you advise unallocated inventory, it is added to the outbound-order line and shipment line specification when the outbound advice is released or the picking list is confirmed.

If you advise inventory with a different specification, the inventory is moved from the advised specification to the outbound order line and shipment specification when the outbound advice is released or the picking list is confirmed.

This is useful, for example, if the supply order with the required specification is delayed and the inventory for the demand order requires immediate shipping.

Advise unallocated inventory

When outbound advice is generated for an outbound order line with a specification, it may occur that insufficient inventory with the required specification is available. In such cases, LN generates an additional advice line with unallocated inventory (if available) to make up for the missing quantity. Also, LN logs a message in the Outbound Advice Log (whinh3526m000) session.

To manually advise unallocated inventory you must clear the specification fields in the Demand Peg group box of the Outbound Advice (whinh4525m000) session. Outbound advice is created manually if the Automatic check box is cleared for the generate outbound-advice activity in the Activities by Warehousing Order (whinh2104m000) session.

If insufficient unallocated inventory is identified, LN generates an error message.

Advise inventory from different specification

To advise inventory from a different specification, you must manually specify the specification to be advised in the specification fields in the Demand Peg group box of the Outbound Advice (whinh4525m000) session.

Setup

To allow unallocated inventory to be advised for outbound order lines with a specification:

  • Select the Advise Unallocated Inventory check box in the Inventory Handling Parameters (whinh0100m000) session.
  • Clear the Use Unallocated Inventory check box in the Items (tcibd0501m000) and the Demand Pegging Terms and Conditions (tctrm1165m000) session. This is to prevent that allocation buffers are created during order planning runs in Enterprise Planning or at sales order entry in Sales Control.

To allow inventory to be advised from a different specification:

Example

A sales order is created to fulfil a demand for 100 pieces of item A, specification Volvo. The total inventory for item A is 130 pieces. For item A, specification Volvo only 80 pieces are present in inventory:

Before outbound advice is created
SessionItemSpecificationInventory on HandInventory AllocatedLocation AllocatedInventory Allocation Change on OrderInventory Allocation Change Allocated
Warehouse - Item Inventory (whwmd2515m000)A130100Not applicableNot applicable
Inventory by Specification (whwmd2519m000)AUnallocated30
Inventory by Specification (whwmd2519m000)AFord20
Inventory by Specification (whwmd2519m000)AVolvo80100

 

These advice lines are generated for the sales order:

LineItemSpecificationQuantity
10AVolvo80
20AUnallocated20

 

After outbound advice is created
SessionItemSpecificationInventory on HandInventory AllocatedLocation AllocatedInventory Allocation Change on OrderInventory Allocation Change Allocated
Warehouse - Item Inventory (whwmd2515m000)A130100100Not applicableNot applicable
Inventory by Specification (whwmd2519m000)AUnallocated302020
Inventory by Specification (whwmd2519m000)AFord20
Inventory by Specification (whwmd2519m000)AVolvo801008020

 

The Inventory Allocation Change on Order field displays the quantity of unallocated items A that is added to specification Volvo after the outbound advice is released (or the picking list is confirmed). The Inventory Allocation Change Allocated field displays the quantity of unallocated items A that is subtracted from the unallocated inventory after the outbound advice is released.