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Allocate stock to regular orders or one with higher priority

Hi all,

We have a situation where a particular product is in serious shortage. We currently have replacement orders created for this product which we assign a lower delivery priority than a regular order. We also assign a delivery block to the replacement orders that will not allow confirmation of dates. This is to ensure that when backorder processing runs that the system will not allocate stock to the replacement orders and if the block is removed that the regular orders are allocated stock first.

Now, the problem we have is this only works well in backorder processing. If a new regular order is created before the backorder is run and there is not enough stock (including those required by the replacement orders), the system will not allocate the stock. For example, Total required stock with replacement orders is 30. Total required stock with regular orders is 20. A new batch of 50 units of stock comes in for this product. If I now create a new regular order of 5, the system would indicate that there is not enough stock because the total for the replacement orders and regular orders preceding this new order is 50 and will have 'consumed' all the stocks available.

What I would like to find out is whether there is a way to get the system to ignore the stock requirement of the replacement orders first (for example considering the delivery priority set in these orders)?

Our temporary solution is to get users to go back in change mode for the newly saved order and redo the ATP check. Based on the checking mode assigned, the system will only consider total confirmed quantity and hence will be able to allocate stock to this new order.

We have also considered using a different storage location to manage this but it introduces too many manual steps when we already have to update delivery block codes and priority in the replacement orders.

Would appreciate if anyone can share some insights as to how the above scenario can be better managed.

Cheers

SF

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3 Answers

  • Best Answer
    Feb 01 at 02:06 AM

    Apart from the suggestion by G Lakshmipathi, I read up more on ATP check in SCM and think that we could consider event driven back order processing to put the orders with partial and unconfirmed quantities in a due list and have system triggers back order processing when a GR happens. Not sure in reality whether it works but this is an idea for now.

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  • Jan 10 at 05:03 AM

    Have you tried the method of Individual requirement(02) at MMR for this material and Plant-So system will prompt you with available qty when creating regular sales order..

    Pl correct us if any..

    Phanikumar

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    • Hi Phanikumar,

      This is already happening for us. In our case, because there are regular and replacement orders created prior, there will be no stock when creating new regular orders. We want the system to allocate stock to these new orders over the replacement orders.

      Regards

      SF

  • Jan 10 at 03:06 PM

    What you can try is to create delivery and save for those orders which should be processed on high priority. By doing so, the stock would be blocked for that sale order / delivery and would not be allocated to any newly created orders. Later, as and when, you want to post the goods issue, the same can be done.

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    • This could be considered although the process at the warehouse is to process all orders that have a delivery created for. We could then block the delivery but this would be extra steps to remember to block and unblock the specific orders, again introducing more manual tasks for the users.