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:
- The activity Generate Outbound Advice (whinh4201m000) must not be set to automatic in the Activities by Warehousing Order (whinh2104m000) session to allow the user to manually specify the specification to be advised.
- Clear the Demand Peg of Outbound Line is Binding check box in the Inventory Handling Parameters (whinh0100m000) session.
Example
A sales order is created to fulfill 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:
| Session | Item | Specification | Inventory on Hand | Inventory Allocated | Location Allocated | Allocation Change on Order | Allocation Change Allocated |
|---|---|---|---|---|---|---|---|
| Warehouse - Item Inventory (whwmd2515m000) | A | 130 | 100 | Not applicable | Not applicable | ||
| Inventory by Specification (whwmd2519m000) | A | Unallocated | 30 | ||||
| Inventory by Specification (whwmd2519m000) | A | Ford | 20 | ||||
| Inventory by Specification (whwmd2519m000) | A | Volvo | 80 | 100 |
Before outbound advice is created these advice lines are generated for the sales order:
| Line | Item | Specification | Quantity |
|---|---|---|---|
| 10 | A | Volvo | 80 |
| 20 | A | Unallocated | 20 |
| Session | Item | Specification | Inventory on Hand | Inventory Allocated | Location Allocated | Allocation Change on Order | Allocation Change Allocated |
|---|---|---|---|---|---|---|---|
| Warehouse - Item Inventory (whwmd2515m000) | A | 130 | 100 | 100 | Not applicable | Not applicable | |
| Inventory by Specification (whwmd2519m000) | A | Unallocated | 30 | 20 | 20 | ||
| Inventory by Specification (whwmd2519m000) | A | Ford | 20 | ||||
| Inventory by Specification (whwmd2519m000) | A | Volvo | 80 | 100 | 80 | 20 |
The 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 Allocation Change Allocated field displays the quantity of unallocated items A that is subtracted from the unallocated inventory after the outbound advice is released.