Allocating inventory

Allocating inventory reserves inventory to fill demand (from customer orders, for example) and reduces the available item quantities. You can allocate inventory in batch by running a batch program. Online allocation occurs when you add a customer order or requisition, for example.

To determine which allocation method to use, refer to this table:

If	Use
Your company is setup to use the batch allocation method	Batch allocation
You need to allocate backorders, no matter which allocation method your company uses.	Batch allocation
If you need to make changes to allocations, whether you are set up to use the batch or online allocation method.	Online allocation