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APO Product Allocation for STO process

Hi Experts,

I have below STO process

Business process -

Supplying plant/Manufacturing Plant - 111, Receiving Plant/distribution center - 112

Sales order is created at DC level and STR is created at DC ,it moves to Supplying plant as a requirement .It then generates Planned order to cater requirement .It then follows production order route in ECC and stock is created .Then STR to STO conversion and by using STO ,delivery is created and PGI is done for DC .In DC stock is available now then new sales order is created at DC level with new order type and dispatched to customer

Questions -

a) How to set Product allocation for STO process in SAP APO

b) At what level product allocations should happen

Appreciate your earliest reply.

Kind regards,

Milind

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