Purpose: The Reservation module reserves inventory from a specific warehouse or multiple warehouses for customer orders as they are entered and accepted through Order Entry.
The system continually evaluates new orders and backorders to ensure that stock is being reserved appropriately for all orders. There are three reservation types:
• Immediate: The system reserves stock when an order is placed, providing stock is available. In an immediate or real-time environment, the system reserves inventory on a first-come, first-served basis (FIFO) in the specified warehouse as each item is added to an order.
• Batch: The system reserves stock for orders when a batch reservation program is submitted. In a batch environment, the system reserves inventory only when you run the Batch Reservation Program. This program determines which orders receive inventory, based on order date, reservation priority, etc. The Batch Reservation Program runs before the picks are printed when you select the Pick Slip Generation option.
• Interactive: The system reserves stock through an interactive entry program. When using the Interactive Reservation function, no inventory is reserved until you run the Interactive Reservation Program (MIRV). This program allows you to disburse inventory manually to preferred customers or to customers who order in large wholesale volume.
Note: In order for the system to reserve inventory for a particular item in a warehouse, the Reservation freeze field for that item warehouse must be set to N.
In this topic:
• Reviewing Immediate Reservation
• Reserving Stock with Immediate Reservation
• Reviewing Interactive Reservation (MIRV)
• Reserving Stock with Interactive Reservation
Purpose: The setting of the Ship Complete from 1 Warehouse (B16) system control value determines the hierarchy the system uses to assign a warehouse to an order line.
If the Ship Complete from 1 Warehouse (B16) system control value is set to Y:
1. A warehouse code for an individual order line: If you enter a warehouse code for an individual order line, the system will use this warehouse to reserve the order line. This warehouse assignment will override all other reserve warehouse logic. Note: You can only override the warehouse code for an individual order line using the F6 option on the Work with Order Lines Screen (Line-by-Line Format).
2. A warehouse code entered on the order header: If you enter a warehouse code in the Warehouse field on the Work with Order screen, the system will use this warehouse to reserve all lines on the order. This warehouse assignment will override all other warehouse assignments except a warehouse code entered for an individual order line.
3. Warehouse list:If you have not entered a warehouse code for an individual order line, or a warehouse code on the order header, the system will look for a warehouse list for the SCF of the order ship to address. A warehouse list can be assigned to an SCF at three levels. The system uses the following hierarchy to determine which warehouse list assigned to the SCF to use.
• SCF/Item: The system uses the warehouse list defined at the SCF/item level first.
• SCF/Item class: If a warehouse list has not been defined at the SCF/item level, the system uses the warehouse list at the SCF/item class level.
• SCF: If a warehouse list has not been defined at the SCF/item class level, the system uses the warehouse list at the SCF level.
• See Warehouse List Hierarchy for more information on how the system determines which warehouse in the warehouse list to use to reserve the item.
4. The item’s primary warehouse: If no reserve warehouse can be assigned based on individual order lines, a warehouse code entered on the order header, or a warehouse list, the system will reserve the item in the warehouse defined for the item in the Item file.
5. Default warehouse: If the item’s primary warehouse is not eligible for reservation (unallocatable or frozen), the system will reserve the item in the default warehouse. If an item warehouse record does not exist for the default warehouse, or the default warehouse is unallocatable or frozen, the system will place the item on backorder with the reason: No Item Warehouse or No allocatable warehouse.
6. Reevaluate warehouse list: If the Reevaluate Reservation Logic at Final Accept (M01) system control value is set to Y, during the final order accept the system reevaluates the items on the order to determine if all of the items can reserve (and ship) from one warehouse in the warehouse list, evaluating each warehouse in warehouse priority sequence.
• If one warehouse in the warehouse list can reserve all of the items, the system re-reserves all of the items on the order in this warehouse.
• If one warehouse in the warehouse list cannot reserve all of the items, the items retain the warehouse currently assigned.
If the Ship Complete from 1 Warehouse (B16) system control value is set to N:
1. A warehouse code for an individual order line: If you enter a warehouse code for an individual order line, the system will use this warehouse to reserve the order line. This warehouse assignment will override all other reserve warehouse logic. Note: You can only override the warehouse code for an individual order line using the F6 option on the Work with Order Lines Screen (Line-by-Line Format).
2. A warehouse code entered on the order header: If you enter a warehouse code in the Warehouse field on the Work with Order screen, the system will use this warehouse to reserve all lines on the order. This warehouse assignment will override all other warehouse assignments except a warehouse code entered for an individual order line.
3. The item’s primary warehouse: If no reserve warehouse can be assigned based on individual order lines or a warehouse code entered on the order header, the system will reserve the item in the warehouse defined for the item in the Item file.
4. Warehouse list:If no reserve warehouse can be assigned based on individual order lines, a warehouse code entered on the order header, or the item’s primary warehouse, the system will look for a warehouse list for the SCF of the order ship to address. A warehouse list can be assigned to an SCF at three levels. The system uses the following hierarchy to determine which warehouse list assigned to the SCF to use.
• SCF/Item: The system uses the warehouse list defined at the SCF/item level first.
• SCF/Item class: If a warehouse list has not been defined at the SCF/item level, the system uses the warehouse list at the SCF/item class level.
• SCF: If a warehouse list has not been defined at the SCF/item class level, the system uses the warehouse list at the SCF level.
• See Warehouse List Hierarchy for more information on how the system determines which warehouse in the warehouse list to use to reserve the item.
5. Default warehouse: If the warehouses in the selected warehouse list are not eligible for reservation (unallocatable or frozen), the system will reserve the item in the default warehouse. If an item warehouse record does not exist for the default warehouse, or the default warehouse is unallocatable or frozen), the system will place the item on backorder with the reason: No Item Warehouse or No allocatable warehouse.
When the system reserves against the item’s primary warehouse: If the Evaluate Warehouses in Warehouse List Only (J47) system control value is set to Y, the system will not reserve an order line against the item’s primary warehouse unless:
• a warehouse list is not associated with the SCF of the order ship to address.
• an item warehouse record does not exist for any of the warehouses in the warehouse list associated with the SCF of the order ship to address.
• an item warehouse record does not exist for a non-HDL warehouse in the warehouse list; see HDL (Home Delivery Service) Processing.
See Warehouse Reservation Processing for examples of how the system determines which warehouse to reserve against, based on the setting of certain system control values.
Reviewing Immediate Reservation
Overview: In the Immediate Reservation environment, the system reserves inventory for an item when the order is placed. In addition, stock is reserved for eligible backorders as new merchandise is received into active inventory in the warehouse. This ensures that eligible backorders receive stock prior to new orders. Backorders are reviewed on a continual basis to ensure that eligible backorders receive stock prior to new orders and that orders are ready for printing as soon as possible.
To generate pick slips, you must run the Pick Slip Generation program. See Introducing Pick Slip Generation.
System control values which control Immediate Reservation:
System Control Value |
Results |
Y = Inventory is reserved for open orders as each line is entered in Order Entry. N = Inventory is reserved for orders by running a batch program after the orders have been entered and processed, or through Interactive Reservation. |
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FIFO Flag (A03) Y/N |
Y = Inventory will be held for orders on a first-in/first-out basis, regardless of whether the order is eligible for fulfillment. This field must be set to Y if Immediate Reservation (A64) is set to Y. N = Inventory will not be held for orders that are not eligible for fulfillment. Note: If this field is set to N, the system subtracts the SKU open quantity from the On hand quantity for each warehouse in calculating the Available quantity. For example, if you have 10 units of an item on-hand in warehouse 1 and warehouse 2, and you enter an order for a quantity of 2, the system displays an available quantity of 8 in both warehouse 1 and warehouse 2. |
Enter a valid Warehouse code that represents the primary shipping warehouse. This code will display on many screens throughout the system. Note: If you are in a multiple warehouse environment, you may want to leave this field blank. |
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Y = The system attempts to fulfill an order from the warehouse closest to the shipping destination, using warehouse ranking for the selected warehouse list. See Warehouse Ranking for an explanation of the logic the system uses to determine the warehouse rank of each warehouse in the selected warehouse list. N = The system looks to first reserve inventory in the item’s primary warehouse, as defined in the Item file. If a warehouse list is defined for the order ship to address, the system uses the warehouse list to reserve inventory only if the item’s primary location does not have enough inventory to fulfill the order. In addition, if the system uses the warehouse list to reserve inventory, the system does not perform Warehouse Ranking, but instead reserves inventory using the hierarchy assigned to the warehouses in the warehouse list. |
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Y = The system attempts to allocate the entire order line, even if it means the item will be reserved across multiple warehouses. N = The system attempts to allocate the entire order line; however, if the item cannot be fully reserved from one warehouse, the system allocates what it can in the one warehouse and then backorders the remaining unfulfilled quantity. |
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Evaluate Warehouses in Warehouse List Only (J47) Y/N |
Y = The system only evaluates the warehouses in the selected warehouse list during reservation and backorder processing. However, if an item warehouse record does not exist for any of the warehouses in the selected warehouse list: • reservation processing will reserve inventory from the item’s primary warehouse. • backorder processing will backorder inventory against the item’s primary warehouse. N = The system evaluates the warehouses in the selected warehouse list and the item’s primary warehouse during reservation and backorder processing. The setting of the Ship Complete from 1 Warehouse (B16) system control value determines the order in which the system evaluates the item’s primary warehouse and the warehouses in the selected warehouse list. |
Reevaluate Reservation Logic at Final Accept (M01) Y/N |
Defines whether the system reevaluates item reservation on a ship to order during the final order accept, and if possible, re-reserve items so that the items ship from a single warehouse in the warehouse list. Y = The system reevaluates item reservation on a ship to order during the final order accept. The system evaluates the warehouses in the selected warehouse list in warehouse priority sequence. • If all of the reserved items can reserve in one warehouse in the warehouse list, the system re-reserves all of the items in this warehouse. • If all of the reserved items cannot reserve in one warehouse in the warehouse list, the system retains the current warehouse assigned to each item. N = The system does not reevaluate item reservation during the final order accept. Note: If you enter Y in this system control value, you must also enter Y in the Ship Complete from 1 Warehouse (B16) system control value. |
Enter the number of days after which an order (or order line) should be considered a future order and will not be reserved. |
Reserving Stock with Immediate Reservation
Determining stock availability: In the Immediate Reservation environment, the system reserves inventory on a first-come, first-served (FIFO) basis in the specified warehouse, as you add an item to an order.
The system is always attempting to reserve stock, based on your System Control file values and by using the Quantity Available calculation to determine if there is sufficient stock for new orders.
Quantity Available Calculation
On hand - Protected - Reserved - Reserve transfer - Backordered = Quantity Available
Where:
On hand = The quantity of the item currently in the warehouse.
Protected = The quantity of the item that the system cannot reserve for immediate or batch reservation. This inventory is reserved only during Interactive Reservation (used to disburse inventory manually to customers who bypass reservation because they buy in high volume).
Reserved = The quantity of the item already set aside for other orders.
Reserve transfer = The quantity of the item set to be transferred to another warehouse through the Warehouse Replenishment program.
Backorder = The quantity of the item unavailable for existing orders that must be fulfilled through PO receipts.
Projected return = The quantity of the item you expect to receive in customer returns and have available to fulfill backorders. You can set the Projected returns for each item. Note: The system checks the projected return field only if the item has a soldout control status of 2 (include on-order quantity on purchase orders); see Customer Service Working with Soldout Controls (WSLD).
Note: Each time an item is reserved, the system reduces the Quantity available and updates the Quantity open by the Quantity ordered fields in the Item Warehouse file. Availability is reduced, regardless of the reservation type.
Reserving stock: In the Immediate Reservation environment, the system reserves stock, as follows:
• If the total order is available: The system increments the order detail line with the quantity reserved to fulfill the order. The program increments the Quantity open and Quantity reserved fields in the Item Warehouse file.
• If a partial order is available: The system reserves what it can and backorders the rest. See Reserving Backorders.
• If no part of the order is available: See Reserving Backorders.
Note: In a FIFO environment, an eligible order is any order taken for an item, open or held. In a Non-FIFO environment, only open orders are considered eligible for reservation.
When Item Availability is a Positive Quantity: If the quantity available is a positive number, the system increments the quantity reserved for the order line (in the Rsv field) immediately (when using Immediate Reservation), so that the item is reserved for the current order and not for another person's order.
When Item Availability is a Negative Quantity: If the quantity available is a negative number, the system:
• Does not reserve the item in any warehouse (because there is none to reserve)
• Displays a negative number for the order line in the Avl field equal to the quantity ordered (if the entire order quantity is backordered). Also, if the entire order quantity is sold out, no Qty displays, and the order totals do not increase.
When Item Availability is only Partially Available: If the system finds a portion of the order quantity available in the warehouse, it will reserve what it can and backorder or sell out the rest. The Rsv field for the order line displays the quantity reserved and the Avl field displays the quantity backordered as a negative number. Any quantity sold out does not appear in the Qty field and does not increase the order totals.
Displaying Item Availability for Eligible Warehouses
When using Immediate Reservation, the system limits the quantity available to the quantity of the item that is available to sell in the eligible warehouse(s) in order to represent the true availability of the item based on where the item may actually ship.
• If you define a warehouse override for the order or order line, the system limits the quantity available to the quantity of the item that is available to sell in that warehouse.
• If a warehouse list is associated with the SCF for the order ship to, the system limits the quantity available to the quantity of the item that is available to sell in the warehouses for the selected warehouse list. In addition:
• If the Evaluate Warehouses in Warehouse List Only (J47) system control value is set to N, the system includes the quantity of the item that is available in the item’s primary warehouse.
• If the Evaluate Warehouses in Warehouse List Only (J47) system control value is set to Y, the system does not include the quantity of the item that is available in the item’s primary warehouse.
• If a warehouse override has not been defined, or the SCF for the order ship to is not associated with a warehouse list, or you are reviewing the quantity available for an item outside of an order, the item availability represents the quantity of the item that is available to sell across all shippable warehouses.
Orders for which stock is unavailable at the time of order entry will not be eligible for immediate reservation. These orders will have stock reserved using the Evaluate Backorders Program. This is a batch program that can be initiated automatically by PO Receiving or Inventory Transactions. The system processes backorders as follows:
• When no part of the order is available: The system does not reserve the item in any warehouse and increments the Quantity backordered field in the Item Warehouse file.
• When a partial order is available: The system reserves what it can and backorders the rest, and increments the Quantity reserved and the Quantity backordered fields in the Item Warehouse file.
Note: Any item/SKU which has been assigned a zone reservation code will be excluded from backorder reservation in the Evaluate Backorders Program. These items are normally reserved and shipped through the zone reservation process; however, zone reservation coded items which have been backordered through the standard order entry process can be reserved in Work with Interactive Reservation. See Shipping Zone Reservation Overview, for information on zone reservation. See Working with Interactive Reservation (MIRV), for more information on reserving interactively.
Evaluating future orders: The arrival date is the date on which the customer wants to receive the order and controls whether inventory is reserved immediately and pick slips print immediately. The system uses the following calculation to determine future orders.
Future Orders Calculation: If Arrival date - Reservation lead days is equal to or greater than today's date, the order is a Future order.
The Evaluate Future Orders program runs each evening to evaluate all order detail lines marked as “future order.” The system re-runs the arrival date calculation and reserves the required inventory based on the order date, if the system-calculated date is less than or equal to today's date.
When the system determines that an order is a future order:
• Inventory is not reserved.
• Each detail line is marked as a future order.
Overview: In a batch environment, the system reserves inventory for orders through the Batch Reservation Program. This program determines which orders receive inventory, based on the order date, reservation priority, etc. The Batch Reservation Program reserves stock and then generates the pick slips.
As orders are entered, Order Entry will not attempt to reserve stock immediately. The program increments the quantity on backorder in the Item/Warehouse record. When Batch Reservation is selected, you are prompted with a selection screen to define the orders you want to reserve.
If you are using a third party order taking service and are receiving orders via telecommunications, tape, or EDI, these orders will be sent through the batch reservation process once they are edited and processed as orders.
System control values that control Batch Reservations:
System Control Value |
Results |
Y = Inventory is reserved for open orders as each line is entered in Order Entry. N = Inventory is reserved for orders by running a batch program after the orders have been entered and processed, or through Interactive Reservation. |
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FIFO Flag (A03) Y/N |
Y = Inventory will be held for orders on a first-in/first-out basis, regardless of whether the order is eligible for fulfillment. This field must be set to Y if Immediate Reservation (A64) is set to Y. N = Inventory will not be held for orders that are not eligible for fulfillment. |
Enter a valid Warehouse code that represents the default warehouse. This code will display on many screens throughout the system. Note: If you have multiple warehouses, you may want to leave this field blank. |
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Y = The system attempts to fulfill an order from the warehouse closest to the shipping destination, using warehouse ranking for the selected warehouse list. See Warehouse Ranking for an explanation of the logic the system uses to determine the warehouse rank of each warehouse in the selected warehouse list. N = The system looks to first reserve inventory in the item’s primary warehouse, as defined in the Item file. If a warehouse list is defined for the order ship to address, the system uses the warehouse list to reserve inventory only if the item’s primary location does not have enough inventory to fulfill the order. In addition, if the system uses the warehouse list to reserve inventory, the system does not perform Warehouse Ranking, but instead reserves inventory using the hierarchy assigned to the warehouses in the warehouse list. |
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Y = The system attempts to allocate the entire order line, even if it means the item will be reserved across multiple warehouses. N = The system attempts to allocate the entire order line; however, if the item cannot be fully reserved from one warehouse, the system allocates what it can in the one warehouse and then backorders the remaining unfulfilled quantity. |
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Evaluate Warehouses in Warehouse List Only (J47) Y/N |
Y = The system only evaluates the warehouses in the selected warehouse list during reservation and backorder processing. However, if an item warehouse record does not exist for any of the warehouses in the selected warehouse list: • reservation processing will reserve inventory from the item’s primary warehouse. • backorder processing will backorder inventory against the item’s primary warehouse. N = The system evaluates the warehouses in the selected warehouse list and the item’s primary warehouse during reservation and backorder processing. The setting of the Ship Complete from 1 Warehouse (B16) system control value determines the order in which the system evaluates the item’s primary warehouse and the warehouses in the selected warehouse list. |
Enter the number of days after which an order (or order line) should be considered a future order and will not be reserved. |
Reserving Stock with Batch Reservation
Determining stock availability: In the Batch Reservation environment, the system reserves inventory for orders through the Batch Reservation Program. This program determines which orders receive inventory, based on the order date, reservation priority, etc.
Once the reservation criteria has been entered, and the Batch Reservation Program is initiated, the system
• sorts the open orders to find all orders matching the reservation criteria,
• evaluates the orders, and
• determines which orders receive inventory, based on the order date, reservation priority, and stock availability.
The system reserves stock based on your System Control file values and by using the Quantity Available Calculation to determine if there is sufficient stock for orders.
Reserving stock in the Batch Reservation environment:
• Batch reservation, FIFO environment: Inventory is reserved for orders when you run the Batch Reservation program. The system reserves inventory for orders on a first-come, first-served (FIFO) basis, regardless of whether pick slips will be generated. The System Control file should contain an N in the Immediate Reservation (A64) field and a Y in the FIFO field.
• Batch reservation, Non-FIFO environment: Inventory is reserved for orders when you run the Batch Reservation program. The system reserves inventory for orders only if pick slips can be generated. The System Control file should contain an Y in the Immediate Reservation (A64) field and an N in the FIFO field.
Reserving backorders: Orders that don't have stock reserved during batch reservation will have stock reserved using the Evaluate All Backorders Program. This is a batch program that can be initiated automatically by PO Receiving or Inventory Transactions.
• When no part of the order is available: The system does not reserve the item in any warehouse.
• When a partial order is available: The system reserves what it can and backorders the rest.
Note: Any item/SKU which has been assigned a zone reservation code will be excluded from backorder reservation in the Evaluate Backorders Program. These items are normally reserved and shipped through the zone reservation process; however, zone reservation coded items which have been backordered through the standard order entry process can be reserved using the Interactive Reservation Screen. See Shipping Zone Reservation Overview, for more information on zone reservation codes.
Reviewing Interactive Reservation (MIRV)
Overview: This feature allows you to reserve stock for specific customers or orders via an interactive entry program. No inventory is reserved until you run the Interactive Reservation Program to manually disperse inventory to preferred customers, or to customers who purchase large volumes of inventory.
You can designate specific customers for interactive reservation using a Customer Class code in which the Bypass reservation field is flagged; for these customers, orders will not be reserved in order entry. You may designate specific items to bypass reservation in order entry by using a quantity limit in the Item/SKU file (i.e., items where there is limited stock).
You can print pick slips at the time of Interactive Reservation or via the Pick Slip Generation Program.
See Working with Interactive Reservation (MIRV).
System control values that control Interactive Reservations:
System Control file value |
Results |
Y = Inventory is reserved for open orders as each line is entered in Order Entry. N = Inventory is reserved for orders by running a batch program after the orders have been entered and processed, or through Interactive Reservation. Note: A Bypass res (Bypass reservation) flag in the Customer file indicates that you do not want to reserve stock for that customer via Immediate or Batch Reservation. |
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FIFO Flag (A03) Y/N |
Y = Inventory will be held for orders on a first-in/first-out basis, regardless of whether the order is eligible for fulfillment. This field must be set to Y if Immediate Reservation (A64) is set to Y. N = Inventory will not be held for orders that are not eligible for fulfillment. |
Enter a valid Warehouse code that represents the default warehouse. This code will display on many screens throughout the system. Note: If you have multiple warehouses, you may want to leave this field blank. |
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Y = The system attempts to fulfill an order from the warehouse closest to the shipping destination, using warehouse ranking for the selected warehouse list. See Warehouse Ranking for an explanation of the logic the system uses to determine the warehouse rank of each warehouse in the selected warehouse list. N = The system looks to first reserve inventory in the item’s primary warehouse, as defined in the Item file. If a warehouse list is defined for the order ship to address, the system uses the warehouse list to reserve inventory only if the item’s primary location does not have enough inventory to fulfill the order. In addition, if the system uses the warehouse list to reserve inventory, the system does not perform Warehouse Ranking, but instead reserves inventory using the hierarchy assigned to the warehouses in the warehouse list. |
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Y = The system attempts to allocate the entire order line, even if it means the item will be reserved across multiple warehouses. N = The system attempts to allocate the entire order line; however, if the item cannot be fully reserved from one warehouse, the system allocates what it can in the one warehouse and then backorders the remaining unfulfilled quantity. |
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Enter the number of days after which an order (or order line) should be considered a future order and will not be reserved. |
Reserving Stock with Interactive Reservation
Reservation conditions: In Working with Interactive Reservation (MIRV), the system reserves stock when the Interactive Reservation option is selected from the Pick Slip/Reservation Menu. Reservation occurs only if:
• The order is not a future order; the system-calculated date is less than or equal to today's date.
• The Reservation freeze field in the item/SKU warehouse record does not contain a Y.
• Reservations can be performed against the warehouse defined in the Item Warehouse record.
Note: Each time an item is reserved, the system reduces the Quantity available and updates the Quantity reserved. Availability is reduced, regardless of the reservation type.
Reserving stock: In the Immediate Reservation environment, the system reserves stock based on the values defined in the Quantity reserve limit field in the Item file. This quantity represents the maximum quantity that can be reserved for any one order through Immediate Reservation in order entry. If the quantity ordered by a customer exceeds this quantity, the system will not reserve any inventory for that order detail line. This order detail line must be flagged for reservation by the Interactive Reservation Program.
Displaying held orders: In Interactive Reservation, you can display held orders that have inventory reserved for them.
The list of held orders is displayed by hold code (e.g., all fraud orders are displayed first) and within hold code by date. You can release the inventory reservation on these orders; however, to cancel the order or take any other action, you must access the Order Maintenance function.
| Reserving Inventory and Generating Pick Slips | Contents | SCVs | Search | Glossary | Reports | Solutions | XML | Index | Reviewing Other Reservation Conditions |
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