Allocation buffers

You can use allocation buffers to allocate free, (unallocated) inventory if insufficient inventory is present.

When you create an allocation buffer, free on hand inventory for a warehouse, item and, if present, an effectivity unit, is allocated to a specification. The inventory is then consumable for outbound order lines whose specification characteristics match those of the allocation buffer. Outbound order lines, advice lines, shipment lines, and so on, created in the outbound and shipment procedures obtain the specification characteristics of the demand order from which they originate.

You can only create allocation buffers if the following applies:

  • The Use Unallocated Inventory check box is selected in the Demand Pegging Terms and Conditions (tctrm1165m000) session.
  • Unallocated inventory is available.

Calculating available unallocated inventory

LN calculates the available unallocated inventory as follows:

{A - (B + C + D)} + E = F
If F > G, G = unallocated available inventory
H - I = G
Symbol Value of field in Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session:
A Inventory on Hand
B Blocked
C Committed
D Location Allocated
E Inventory Committed in Process
F Intermediate result
H Inventory on Hand field of the Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session
I On Hand field in the Inventory by Specification (whwmd2519m000) session
Note: Allocation buffers are generated based on a number group and series defined in the Inventory Planning Parameters (whinp0100m000) session.

The committed inventory C and the location allocated inventory D can overlap, because if outbound advice is created for committed inventory, this advised committed inventory is listed as both committed and location allocated inventory. If C and D were subtracted from A to calculate F, the calculated free inventory F would be lower than the actual free inventory. Therefore, the inventory committed in process E is added to balance the result.

If F is more than the difference between the Inventory on Hand field of the Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session and the On Hand field in the Inventory by Specification (whwmd2519m000) session, the result is adjusted to this difference.

Creating allocation buffers

Allocation buffers are created:

You can view allocation buffers in the Inventory Commitments (whinp2100m000) session.

Creating allocation buffers in Enterprise Planning

During an order planning run, Enterprise Planning can create allocation buffers to allocate inventory to a demand order.

To allocate inventory:

  1. LN checks whether unallocated inventory is available for the item, warehouse, and specification of the demand order.

  2. If no, no allocation takes place.

  3. If yes, LN looks for allocation buffers without outbound advice whose specification characteristics match those of the demand order.

  4. If found, the quantity of the existing allocation buffer is increased with the quantity required for the demand order and the quantity of the unallocated inventory is reduced by the demand order quantity.

  5. If not found, LN creates a new allocation buffer with a specification whose characteristics are identical to those of the demand order. The quantity of the new allocation buffer matches the demand order quantity.

    In the Inventory by Specification (whwmd2519m000) session, the following fields are increased with the new allocation buffer quantity:

    • In Allocation Buffer
    • On Hand

Creating allocation buffers at sales order line entry

Allocation buffers can be created as follows from the Sales Order Lines (tdsls4101m000) session, or the Sales Order Planned Delivery Lines (tdsls4101m100) session:

  • Manually from the stock shortage menu

    When an inventory shortage occurs on the order line, the Inventory Shortage Menu (tdsls4830s000) session is started. Select Create Allocation Buffer to create an allocation buffer in the Create Allocation Buffers (tdsls4813s000) session. The allocation buffer is created when the sales order line is saved.

  • Manually in Warehousing

    You can allocate unallocated inventory in the Inventory Commitments (whinp2100m000) session. On the appropriate menu, click Allocation Buffers to start this session and enter your data.

  • Automatically at sales order line entry

    When an inventory shortage occurs, an allocation buffer is automatically created at sales order line entry if the Automatic Inventory Shortage Handling field is set to Create Allocation Buffer for the relevant item in the Sales Order Types (tdsls0594m000) session.

Consumption of allocation buffers

If outbound advice is created for an outbound order line with a specification, LN first advises the allocated- to inventory that was received by means of supply orders with matching specification characteristics, thus increasing the quantity in the Location Allocated field of the Inventory by Specification (whwmd2519m000) session.

If this inventory is insufficient, LN advises inventory from allocation buffers with specification characteristics that match those of the outbound order line, thus increasing the quantity in the Location Allocated field and the In Allocation Buffer field of the Inventory by Specification (whwmd2519m000) session.

Note: If insufficient inventory for a particular specification is available to be issued from the warehouse, you can advise unallocated inventory or inventory from a different specification to make up for the missing quantity. Whether this is allowed is determined by the Advise Unallocated Inventory and the Demand Peg of Outbound Line is Binding check box in the Warehousing Settings by Site (whwmd2101m000) session. See Allocated or unallocated inventory in the outbound process.

Likewise, if outbound advice is released for an outbound order line with a specification, LN first releases the allocated- to inventory that was received by means of orders with matching specification characteristics. If the corresponding shipment lines are confirmed, the quantity in the Location Allocated field of the Inventory by Specification (whwmd2519m000) session is decreased.

If this inventory is insufficient, LN releases inventory from allocation buffers with specification characteristics that match those of the outbound order line. If the corresponding shipment lines are confirmed, the quantity in the Location Allocated field of the Inventory by Specification (whwmd2519m000) session is decreased.

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