Batch Allocation Using Fair Share, Allocation Priority Rules or Allocation priority with Fair Share

This instruction explains how you work with batch allocation. Using batch allocation, you can reallocate and distribute current allocations among demand order lines according to user defined rules. This is most likely to be necessary because of shortage problems. Redistribution can be done in one of the following ways:

Fair share - in which a percentage of an original requirement to the customer is allocated to each selected order line
Allocation priority rules - according to priorities
Allocation priority with fair share – demand lines are prioritized and grouped to be able to distribute remaining available quantity among the demand lines within the allocation priority group where the remaining available quantity will not be able to fulfill demand quantity of the allocation priority group.
For each demand line that is selected for allocation, a validation is performed that the remaining allocatable net is enough for all demand lines within the allocation priority group (all demand lines having the same priority in the allocation priority model). If the allocatable net is sufficient, all demand within the allocation priority group will be allocated and the first demand line from the next allocation priority group is validated. If the allocatable net is not enough to fulfill demand quantities within the allocation priority, the remaining allocatable net will be distributed according to fair share among the demand lines within the allocation priority group tested. All the following demand lines that belong to a lower prioritized allocation priority group will not be allocated.

Batch allocation limits can be activated in batch allocation run to validate and adjust the redistributed allocated quantities.

Outcome

Orders are reallocated based on the specified rules.

Certain customers are given priority when shortages occur.

The completely allocated order raises order status to 33.

The allocated balance ID is stored in the MITLOC file.

The allocated order and order line are stored in the MITALO file.

Before you start

Before this instruction can be used, the following prerequisites must be met:

An order with automatic allocation (allocation method 2 – 5) control is created. The automatic start job function must, in this case, also be stopped in 'Subsystem. Open' (MNS050).
The settings for batch allocation must be defined. Refer to:
Batch Allocation Settings

Basic Batch Allocation Settings

Settings for Fair Share, Allocation Priority Rules and Allocation Priority with Fair Share

Follow these steps for using fair share

Start 'Allocation. Distribute Quantities' (MMS189) and fill in the following fields.
- Enter the actual warehouse or warehouses that should be selected in the Warehouse field.
- The 'Style no.' field indicates a comprehensive term for numbers of similar items. This is not mandatory and is frequently used in the fashion industry.
- Enter the actual item or items that should be batch allocated in the 'Item no.' field.
- The 'Planning date' field indicates the date when a scheduled transaction is expected to take place. You can use it to override the demand time fence. If you leave this field blank, the demand time fence is used for calculating the planning date.
- Enter the appropriate priority retrieved from the customer order in the Priority field. The priorities are displayed in the material plan (MMS080). Priority selection is used in the case of shortages.
- Select 'Check allocation limits' if validation and adjustment of redistributed allocated quantities should be included according to batch allocation limits
- Enter 1=According to a calculated percentage of ordered quantity (fair share) in the 'Distribution method' field.
Press Enter. Fair share is calculated as:

(Selected requirements total allocated quantity + Allocable net)

__________________________________________________

(Selected requirements planned quantity)

Follow these steps for using allocation priority rules

Start 'Allocation. Distribute Quantities' (MMS189). Fill in the fields according to the steps for using Fair Share.
In the 'Distribution method' field, set 2=According to allocation priority.
The 'Allocation priorities hierarchy' field is set as a sequence.

The field indicates the order in which item requirements are reallocated. Requirements with the highest priority are allocated first, so they run the least risk of shortage.

The valid alternatives are:

0 = As in M3 standard (planning date/order received date)

1 = Customer order header priority

2 = Customer priority

3 = Allocation priority (according to MMS156, 157, 159)

4 = First ship date

5 = Last ship date.

6 = Allocation priority model (according to CMS016, CMS017, MMS181, MMS182).

For example, if the hierarchy is set as 2 1 0, M3 will allocate according to customer priority; then, if there is not enough stock for a particular priority, it allocates according to customer order header priority and then by standard M3 allocation rules.

Note: Allocation priorities hierarchy value 2, 3, 4, 5 is only valid for Customer orders while hierarchy values 0,1 or 6 is valid for customer orders, distribution orders and requisition orders.
Press Enter.

Selected requirements will be processed according to the hierarchy, and full allocation will be carried out as much as possible.

Note: If allocation control rules are defined in (MMS123) and (MMS124), they will influence the distribution of allocated items in the same way as in automatic allocation.
If joint delivery rules are defined in (CMS016, CMS017) and (MWS125), they also may influence this function if (MWS180) is subsequently run.

Note: Order lines with an overriding allocation method not equal to 0 (equal to 1, 2, or 3) will not be affected for batch allocation via (MMS189). The result will be that if the line has a quantity of 0 allocated and the overriding allocation method is 1, 2 or 3, then batch allocation will not increase the allocation regardless of how much stock is available.
The 'Overriding allocation method' (NOAA) field setting is located in 'Allocation. Perform Detailed' (MMS121/B1).

Follow these steps for allocation priority with fair share

A correct allocation priority model must exist. This model will be used to prioritize selected demand lines. All demand lines that get the same allocation priority belongs to the same allocation priority group. Fair share will only be calculated among demand lines having the same priority.

Start 'Allocation. Distribute Quantities' (MMS189).
- Enter the actual warehouse or warehouses that should be selected in the Warehouse field.
- The 'Style no.' field indicates a comprehensive term for numbers of similar items. This is not mandatory and is frequently used in the fashion industry.
- Enter the actual item or items that should be batch allocated in the 'Item no.' field.
- The 'Planning date' field indicates the date when a scheduled transaction is expected to take place. You can use it to override the demand time fence. If you leave this field blank, the demand time fence is used for calculating the planning date.
- Enter the appropriate priority retrieved from the customer order in the Priority field. The priorities are displayed in the material plan (MMS080). Priority selection is used in the case of shortages.
- Select 'Check allocation limits' if validation and adjustment of redistributed allocated quantities should be included according to batch allocation limits
- Enter 1=According to a calculated percentage of ordered quantity (fair share) in the 'Distribution method' field.
In the 'Distribution method' field, set 3=According to allocation priority model with fair share
The 'Allocation priorities hierarchy' field is set as a sequence.

The valid alternatives are for first allocation priority hierarchy:

6 = Allocation priority model (according to CMS016, CMS017, MMS181, MMS182). Following allocation priority hierarchy fields can use all available alternatives,
Press Enter.