Inventory allocation

The term "allocate" means to reserve requested item quantities. When items are requested in the Requisitions application, the application allocates the items to the requester so they are no longer available to others. You can allocate inventory items in one of two ways, online or by batch. Difference between online and batch processing for allocation and feedback

Online allocation

In online allocation, items are allocated as each requisition is released. Online allocation reserves items on a first-come, first-served basis.

Online allocation forms enable you to select which orders to fill if insufficient stock exists. You can also use the online forms to change allocated quantities or to reallocate quantity from one requisition to another. However, you can only maintain allocations online -- before pick tickets are printed.

Batch allocation

With batch allocation, item quantities remain unallocated until you run the batch program. After you've run the batch program, items are allocated to multiple requesters at one time. Batch allocation can reserve items on a priority basis. Batch allocation is for companies that give priority to certain customers and to those that specify many documents.

Companies use batch allocation to:

  • Allocate backordered item quantities

  • Deallocate (change existing allocations)

  • Allocate part of a line