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<ManualTopic ID="/baanerp/cp/onlinemanual/000460" xml:lang="en">
   <Header>
      <Title>Allocation and hard pegging overview</Title>
      <Keyword type="header" order="d1e177576">
         <Level1>Allocation</Level1>
      </Keyword>
      <Keyword type="header" order="d1e177579">
         <Level1>Hard pegging</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>
         <Link href="/baanerp/cp/glossary/glossary#000450" role="glossary">Allocation</Link> of inventory and <Link href="/baanerp/cp/glossary/glossary#000451" role="glossary">hard pegging</Link> of orders are related methods used to
		designate a quantity of supply to a specific purpose.</Paragraph>
      <List>
         <ListIntro>The allocation and hard pegging functionality enables you
		  to:</ListIntro>
         <ListItem>Promise a customer a particular quantity of an item. The
		  allocated inventory cannot be shipped to other customers and serves as a
		  reservation.</ListItem>
         <ListItem>Link an identifiable quantity of an item to a particular
		  demand. In this way, this quantity cannot be interchanged with another quantity
		  of the same item. For example, you use this to keep components and <Link href="/baanerp/ti/glossary/glossary#000000000000026" role="glossary">subassemblies</Link> together.</ListItem>
      </List>
      <Paragraph>To do this, LN links <Link href="/baanerp/wh/glossary/glossary#000484" role="glossary" Update="No">supply orders</Link> to <Link href="/baanerp/wh/glossary/glossary#000483" role="glossary" Update="No">demand orders</Link> using <Link href="/baanerp/tc/glossary/glossary#000455" role="glossary" Update="No">specifications</Link>.</Paragraph>
      <List>
         <ListIntro>If inventory is allocated or supply is hard pegged to a
		  specific demand, numerous processes are involved, such as:</ListIntro>
         <ListItem>Order planning</ListItem>
         <ListItem>Issue and receive materials</ListItem>
         <ListItem>Outbound and ship goods</ListItem>
      </List>
      <Paragraph>To use allocation and hard pegging, you must set up the master
		data. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000462" role="manual">To set up allocation and hard pegging</Link>.</Paragraph>
   </AimSection>
   <GeneralSection ID="set_up">
      <SectionTitle>Using allocation and hard pegging</SectionTitle>
      <List>
         <ListIntro>When a demand order is created, LN:</ListIntro>
         <ListItem>Links a specification to the demand order.</ListItem>
         <ListItem>Allocates inventory to the demand order.</ListItem>
         <ListItem>Updates the quantity of the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000#whwmd219.qall" role="manual">Allocated-to Inventory Allocated</GUIRef> field in the <GUIRef href="/baanerp/wh/wmd/whwmd2519m000" role="session">Allocated - to Inventory (whwmd2519m000)</GUIRef> session with the quantity of the demand
		  order, even if insufficient inventory is available to fulfill the demand
		  order.</ListItem>
      </List>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>If the demand order is created manually or from <Link href="/baanerp/cp/glossary/glossary#000075" role="glossary">independent demand</Link>, specifications are created if the
		  allocation and hard pegging terms and conditions are defined. If the demand
		  order is created from <Link href="/baanerp/cp/glossary/glossary#000074" role="glossary">dependent demand</Link>, the demand order can only receive a
		  specification from the origin that created the order. To see how a <Link href="/baanerp/tc/glossary/glossary#000455" role="glossary" Update="No">specification</Link> is transferred between business
		  objects, refer to <Link href="/baanerp/cp/onlinemanual/000465" role="manual">Allocation and hard pegging example</Link>.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To handle insufficient inventory</SectionTitle>
      <Paragraph>If insufficient inventory is available to fulfil a demand order,
		you can create supply orders or allocate inventory.</Paragraph>
      <Paragraph>Supply orders are generated or manually created if insufficient
		allocated or unallocated inventory is present to fulfil the demand order. If a
		supply order is generated for the demand order, a specification is also
		generated for the supply order. This specification has the same characteristics
		as the specification of the demand order. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000463" role="manual">To hard peg supply orders</Link>.</Paragraph>
      <Paragraph>Inventory is allocated using <Link href="/baanerp/wh/glossary/glossary#000482" role="glossary" Update="No">allocation buffers</Link> if insufficient allocated,
		but sufficient unallocated inventory is present. The inventory included in an
		allocation buffer is linked to a specification. As a result, the buffered
		inventory is available for demand orders with matching specification criteria. For more information, refer to <Link href="/baanerp/cp/onlinemanual/000461" role="manual">Allocation buffers</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Inventory allocation levels</SectionTitle>
      <Paragraph>Inventory allocation levels determine whether allocated-to
		inventory is identifiable and traceable in the warehouse through <Link href="/baanerp/wh/glossary/glossary#000432" role="glossary" Update="No">handling units</Link> or merely registered as
		allocated-to inventory. You can define allocation levels for warehouse - item
		combinations in the <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> session and the <GUIRef href="/baanerp/wh/wmd/whwmd4100s000" role="session">Item - Warehouse (whwmd4100s000)</GUIRef> session.</Paragraph>
      <Paragraph>For more information, refer to <Link href="/baanerp/cp/onlinemanual/000464" role="manual">Inventory allocation levels</Link>.</Paragraph>
   </GeneralSection>
   <GeneralSection ID="allocation_change_order">
      <SectionTitle>To change inventory allocations</SectionTitle>
      <Paragraph>Changing an inventory allocation is required, for example, if
		the order for which the inventory is allocated is canceled. To change an
		allocation, use an <Link href="/baanerp/wh/glossary/glossary#000470" role="glossary">allocation change order</Link>.</Paragraph>
      <Paragraph>Allocation change orders are generated based on a number group
		and series defined in the <GUIRef href="/baanerp/wh/inh/whinh0100m000" role="session">Inventory Handling Parameters (whinh0100m000)</GUIRef> session.</Paragraph>
      <List>
         <ListIntro>For more information, refer to:</ListIntro>
         <ListItem>
            <Link href="/baanerp/wh/inh/whinh1120m000" role="session">Allocation Change Orders (whinh1120m000)</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/inh/whinh1130m000" role="session">Allocation Change Order Lines (whinh1130m000)</Link>
         </ListItem>
      </List>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000462" role="manual">To set up allocation and hard pegging</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000463" role="manual">To hard peg supply orders</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000461" role="manual">Allocation buffers</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000464" role="manual">Inventory allocation levels</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/cp/onlinemanual/000465" role="manual">Allocation and hard pegging example</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000450" role="manual">Overview of subcontracting</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/tc/onlinemanual/000500" role="manual">Overview of terms and conditions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/wh/onlinemanual/000458" role="manual">Vendor managed inventory</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>