| Allocation buffers |  |
| You can use allocation buffers to allocate free, (unallocated) inventory if insufficient inventory is present. When you create an allocation buffer, free on hand inventory for a warehouse, item and, if present, an effectivity unit, is allocated to a specification. The inventory is then consumable for outbound order lines whose specification characteristics match those of the allocation buffer. Outbound order lines, advice lines, shipment lines, and so on, created in the outbound and shipment procedures obtain the specification characteristics of the demand order from which they originate. You can only create allocation buffers if the following applies: The Use Unallocated Inventory check box is selected in the Allocation and Hard Pegging Terms and Conditions (tctrm1165m000) session. Unallocated inventory is available. Note Allocation buffers are generated based on a number group and series defined in the Inventory Planning Parameters (whinp0100m000) session. To calculate available unallocated inventory ERP LN calculates the available unallocated inventory as follows:
    {A - (B + C + D)} + E = F
    If F > G, G = unallocated available inventory
    H - I = G
Symbol | Value of field in Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session:
A | Inventory on Hand
B | Blocked
C | Committed
D | Location Allocated
E | Inventory Committed in Process
F | Intermediate result
H | Inventory on Hand field of the Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session
I | Inventory On Hand field in the Inventory by Specification (whwmd2519m000) session
The committed inventory C and the location allocated inventory D can overlap, because if outbound advice is created for committed inventory, this advised committed inventory is listed as both committed and location allocated inventory. If C and D were subtracted from A to calculate F, the calculated free inventory F would be lower than the actual free inventory. Therefore, the inventory committed in process E is added to balance the result. If F is more than the difference between the Inventory on Hand field of the Inventory by Warehouse, Item and Effectivity Unit (whwmd2516m000) session and the Inventory On Hand field in the Inventory by Specification (whwmd2519m000) session, the result is adjusted to this difference. To create allocation buffers Allocation buffers are created: During an order planning run in Enterprise Planning. For more information, refer to Creating allocation buffers in Enterprise Planning. At sales order line entry (the sales order line being the demand order). The allocation buffer is created for the warehouse, item, effectivity unit, and specification of the sales order line. For more information, refer to Creating allocation buffers at sales order line entry. Manually in the Inventory Commitments (whinp2100m000) session. You can view allocation buffers in the Inventory Commitments (whinp2100m000) session. Creating allocation buffers in Enterprise Planning During an order planning run, Enterprise Planning can create allocation buffers to allocate inventory to a demand order. To allocate inventory: ERP LN checks whether unallocated inventory is available for the item, warehouse, and specification of the demand order. If no, no allocation takes place. If yes, ERP LN looks for allocation buffers without outbound advice whose specification characteristics match those of the demand order. If found, the quantity of the existing allocation buffer is increased with the quantity required for the demand order and the quantity of the unallocated inventory is reduced by the demand order quantity. If not found, ERP LN creates a new allocation buffer with a specification whose characteristics are identical to those of the demand order. The quantity of the new allocation buffer matches the demand order quantity. In the Inventory by Specification (whwmd2519m000) session, the following fields are increased with the new allocation buffer quantity: Inventory in Allocation Buffer Inventory On Hand Creating allocation buffers at sales order line entry Allocation buffers can be created as follows from the Sales Order Lines (tdsls4101m000) session, or the Sales Order Delivery Lines (tdsls4101m100) session: Manually from the stock shortage menu When an inventory shortage occurs on the order line, the Inventory Shortage Menu (tdsls4830s000) session is started. Select Create Allocation Buffer to create an allocation buffer in the Create Allocation Buffers (tdsls4813s000) session. The allocation buffer is created when the sales order line is saved. Manually in Warehousing You can allocate unallocated inventory in the Inventory Commitments (whinp2100m000) session. On the appropriate menu, click Allocation Buffers to start this session and enter your data. Automatically at sales order line entry When an inventory shortage occurs, an allocation buffer is automatically created at sales order line entry if the Automatic Inventory Shortage Handling field is set to Create Allocation Buffer for the relevant item in the Sales Order Types (tdsls0594m000) session. Consumption of allocation buffers If outbound advice is created for an outbound order line with a specification, ERP LN first advises the allocated- to inventory that was received by means of supply orders with matching specification characteristics, thus increasing the quantity in the Inventory Location Allocated field of the Inventory by Specification (whwmd2519m000) session. If this inventory is insufficient, ERP LN advises inventory from allocation buffers with specification characteristics that match those of the outbound order line, thus increasing the quantity in the Inventory Location Allocated field and the Inventory in Allocation Buffer field of the Inventory by Specification (whwmd2519m000) session. Likewise, if outbound advice is released for an outbound order line with a specification, ERP LN first releases the allocated- to inventory that was received by means of orders with matching specification characteristics. If the corresponding shipment lines are confirmed, the quantity in the Inventory Location Allocated field of the Inventory by Specification (whwmd2519m000) session is decreased. If this inventory is insufficient, ERP LN releases inventory from allocation buffers with specification characteristics that match those of the outbound order line. If the corresponding shipment lines are confirmed, the quantity in the Inventory Location Allocated field of the Inventory by Specification (whwmd2519m000) session is decreased. Related topics Allocation and hard pegging overview Order planning, an overview |