1. SCM (Supply Chain Management)
  2. Inventory Management
  3. Advanced Inventory Management
  4. Supply Allocation
  5. Supply Allocation Management
  6. Creating Allocation Strategies
  7. Allocation Strategy Examples

Allocation Strategy Examples

The following image shows how NetSuite allocates inventory based on the values set in the Allocation Method, Allocation Quantities, and Allocation Period fields.

Consider a sales order line that has a quantity of 100 units of Item_1:

If Allocation Method is Earliest and Allocation Quantities is Available Quantity, NetSuite allocates Supply 1 in Week 1 to the sales order line. Supply 1 represents the allocation of a partial quantity of inventory as soon as it's available before the Supply Required by Date.

NetSuite allocates Supply 3 or Supply 4 to the sales order line based on the alternate methods and quantities. Supply 3 represents the allocation of the total quantity of inventory for the sales order, close to the Supply Required by Date. Supply 4 represents the allocation of a partial quantity of inventory as close as possible to the Supply Required by Date.

Use the Allocation Period field to limit the allocation of inventory by defining a specific period before or after the Supply Required by Date. In this example, NetSuite would not consider Supply 1 for allocation when the Allocation Period is 14 days before the Supply Required By Date. You can also use the Allocation Period option to limit allocation of future supplies arriving later than the Supply Required By Date.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

For more information, see Creating Allocation Strategies.

Additional control to fulfillments when serving large retail brands

  1. Enabling Supply Allocation.

  2. To open an existing allocation strategy, go to setup> Order Management > Order Allocation Strategies.

  3. In the Order Allocation Strategies page, click Edit beside the strategy you want to use.

  4. To stop allocation, in the Allocation Type subtab, check the Commitment Confirmed Stops Allocation on Order Line box.

  5. Click Save.

The above Allocation Type option is effective when the order line Commitment Confirmed box is checked.

This stops order line allocation by:

  • preventing new allocations

  • preventing reallocation

  • affecting both real–time and batch allocations

Reallocate Order Item, as the ultimate exception management tool, ignores Commitment Confirmed regardless of this option.

Related Topics:

General Notices