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Create an Inventory Allocation Rule

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This page describes procedures for environments using Inventory Management (New Method).

If your screen layout differs from the one shown on this page, refer to the Inventory Management (Conventional Method) manuals.

Overview​

Allocation rules define how inventory is selected and assigned to demand.

This section explains how to create a new allocation rule definition in Inventory Management (New Method).

Purpose​

By creating an allocation rule, you can define in advance which inventory to prioritize for allocation when an order is received.

By organizing conditions such as the lot allocation order, locations, and segments into rules, you can run inventory allocation operations with less dependence on individual staff judgment. Clarifying the target inventory scope and priority order makes it easier to reduce allocations from unintended locations or segments and prevent allocation errors.

Feature Description​

What can be configured in an allocation rule​

In the allocation rule definition, you configure the conditions for selecting and allocating inventory to demand.

You can mainly configure the following settings:

  • Allocation rule code
  • Allocation rule name
  • Lot allocation order
  • Rule type
  • Location inventory allocation settings
  • Inventory segment allocation settings

Lot allocation order​

In the lot allocation order, you specify the order in which inventory is allocated.

  • FIFO: Prioritizes stock received earlier.
  • FEFO: Prioritizes stock with earlier expiration dates.

Even for backorders or make-to-order, the lot allocation order is treated as the baseline.

Rule type​

In the rule type, you select the type of inventory handled by the allocation rule.

  • Inventory only: Uses only allocatable inventory. If stock is unavailable, no additional orders are accepted.
  • Inventory + Backorder: Uses allocatable inventory first and assigns any shortage as a backorder to the pending supply quantity.
  • Make To Order: Assigns the order to the pending supply quantity as make-to-order without allocating inventory.

When Inventory only or Inventory + Backorder is selected, you can configure the location inventory allocation settings and inventory segment allocation settings.

When Make To Order is selected, the location inventory allocation settings and inventory segment allocation settings are not applicable.

Location inventory allocation settings​

In the location inventory allocation settings, you can explicitly specify the locations to be targeted for allocation.

When Enable settings is turned on, select one or more locations to include in allocation. When it is turned off, all allocatable locations are eligible.

In the target allocation locations, you can set the priority order. The first location is treated as the priority location for immediately available inventory, and subsequent locations are treated as alternative locations.

Inventory segment allocation settings​

In the inventory segment allocation settings, you can explicitly specify the inventory segments to be targeted for allocation.

When Enable settings is turned on, select one or more segments to include in allocation. When it is turned off, all allocatable inventory segments are eligible.

You can also set the priority order in the target allocation segments.

The unassigned segment (default) is also included in the options.

Instructions​

Navigating to the allocation rule creation page​

  1. Click Inventory.
  2. Click the Settings tab.
  3. Click Allocation rules.
  4. Click the New allocation rule button.
    The "New allocation rule" page opens.

How to Complete the Form​

Basic Information​

  1. Allocation rule code
    Enter the code that identifies the allocation rule. This is a required field.

  2. Allocation rule name
    Enter the display name of the allocation rule. This is a required field.

  3. Lot allocation order
    Select the basic rule for the inventory allocation order from the following. This is a required field.

    • FIFO: Prioritizes stock received earlier.
    • FEFO: Prioritizes stock with earlier expiration dates.

Rule type​

  1. In Rule type, select one of the following:
    • Inventory only
    • Inventory + Backorder
    • Make To Order

When Inventory only or Inventory + Backorder is selected, you can continue to configure the location inventory allocation settings and inventory segment allocation settings.

When Make To Order is selected, the location inventory allocation settings and inventory segment allocation settings are not configured.

Location inventory allocation settings​

This setting is optional when the Rule type is Inventory only or Inventory + Backorder.

  1. Enable settings
    Specify whether to enable the location inventory allocation settings using the toggle button.
    • Yes: Configures the locations to be targeted for allocation and the priority order.
    • No: All allocatable locations are eligible.

When location inventory allocation settings are enabled

Select the locations to be targeted for allocation and configure the priority order.

  1. In Location selection, search for candidate locations.

  2. Select candidate locations from the search results and add them to the target allocation.

  3. In Target allocation locations, configure the priority order of the added locations.

    • In Sorting settings, you can sort locations according to the configured rules. Configure the Facility priority or Field-specific conditions, and click the Apply sort button to sort.
      • Facility priority sorts locations linked to facilities in the selected order. Unselected facilities move to the end.
      • In Field-specific conditions, locations are sorted in Ascending or Descending order based on the location's Code or Barcode. When facilities are selected, sorting is applied within each selected facility. Locations in unselected facilities are sorted across those facilities. If None is specified, sorting by field-specific conditions is not performed.
    • In Bulk mode, you can select multiple target locations, change their priority order by specifying a position, or remove them in bulk from Target allocation locations.
    • You can reorder individual locations with the ↑ and ↓ buttons, and remove locations from Target allocation locations with the Remove button.

When location inventory allocation settings are disabled

Target allocation locations are not configured. Proceed to the next step.

Inventory segment allocation settings​

This setting is optional when the Rule type is Inventory only or Inventory + Backorder.

  1. Enable settings
    Specify whether to enable the inventory segment allocation settings using the toggle button.
    • Yes: Configures the segments to be targeted for allocation and the priority order.
    • No: All allocatable inventory segments are eligible.

When inventory segment allocation settings are enabled

Select the segments to be targeted for allocation and configure the priority order.

  1. Select candidate segments from Segment selection and add them to the target allocation. The unassigned segment (default) can also be selected.
  2. In Target allocation segments, configure the priority order of the added segments.
    • You can reorder them by drag and drop.
    • You can reorder them by directly selecting the priority order from the drop-down menu.

Create an Inventory Allocation Rule​

  1. After reviewing your entries, click the Create allocation rule button.

    If the process succeeds, a new allocation rule is created.

Important Notes​

When location or inventory segment allocation settings are enabled, target selection is required​

When the location inventory allocation settings are enabled for a rule type that uses inventory, you must select one or more locations.

When the inventory segment allocation settings are enabled, you must select one or more segments.

Locations and segments not included in the target will be excluded from allocation when an order is received​

When location or inventory segment allocation settings are enabled, locations and segments not included in the target will, in principle, be excluded from inventory allocation when an order is received.

When an Order Confirmation is created or updated, allocatable inventory is rechecked based on the inventory allocation rules, unlike when an order is received.

When an Order Confirmation is created or updated, if the allocatable inventory within the inventory allocation rules is insufficient, inventory is automatically allocated from locations or segments that were not included in the target if allocatable inventory is available there.