Wave template Behavior During Pick Denial

Dear Experts,

I was exploring the settings for "Behavior During Pick Denial" in wave templates, specifically option "A- remove item in wave (new assignment)". I would highly appreciate if you could give an overview about the applicability of this setting.

I have been successful in generating a pick denial during wave release for a wave item. But I would expect that the wave item be removed from the current wave and assigned to a new wave (exactly what I thought option A would do). However, the new wave is not generated as expected and the wave item stays with original wave.

I have tried with one item/multiple item, full pick denial / partial pick denial, but no success.

My requirement is to assign wave items to a new wave (based on the best wave template option that system finds) If "pick denial" occurred during wave release and EWM cannot fully release a wave item.

I will be happy to provide more information on this.

Regards,

Shashidhar