Explanation - STD2 Scenario #1

The STD2 pre-allocation process does not look at the inventory by unit of measure and uses the lot inventory strictly based on the rotation rules used. Therefore, all available inventory is used for the oldest (1-Mar) lot first and the remaining quantity needed is pre-allocated from the next (1-Apr) lot.

All of the 1-Mar lot was in the same location so a pick is created for that. The 1-Apr lot is in two locations. Since the allocation strategy detail line was left with the default value to select the location using the location sequence, the entire quantity in the lowest location number (C103) was allocated before moving to the next location (C261) with inventory for this lot.