Understanding the Order Line Processing Sequence
Understanding how order lines are sequenced for reservation processing enables you to develop prioritization rules and make reallocation decisions to ensure that the most profitable orders are fulfilled first.
How Order Line Sequence Affects Reservation Processing
When using the Reserve Materials process, Fulfillment Workbench, and Inventory Reservation EIP, the sequence in which order lines are processed determines which soft-reserved lines are to consume the business unit's quantity available and which ATP-reserved lines are to consume the business unit's cumulative ATP quantity.
In manual reservation processing, sequencing is also important. When you automatically distribute quantity across order lines that appear on the Shortage Workbench, the quantity is distributed per your specifications to the eligible order lines, starting with the first order line that appears and continuing down the list until the available quantity is exhausted. The sequence of order lines on the Shortage Workbench enables you to determine quickly which orders should be unfulfilled to free quantity for orders with a higher priority.
When launching the online reservations program from sales order entry in PeopleSoft Order Management or material stock request entry in PeopleSoft Inventory, the program immediately tries to reserve or promise stock for the specific order or line and give immediate feedback about the quantities reserved or promised. This method does not process lines in sequence.
How Order Lines Are Sequenced for Reservation Processing
For the Reserve Materials process, Fulfillment Workbench, and Inventory Reservation EIP, the order lines that meet the criteria are sequenced for reservation processing using a combination of the inventory priority rank assigned to the order and the final sort order defined for the business unit.
An inventory priority rank is assigned to every order line based on rules established on the Priority Rule Definition page. The selected order lines are sequenced first by priority rank value, starting with the lowest rank value. An order may match more than one of the inventory priority rules, but it is assigned the lowest matching priority rank value. For example, if the order line matches rules for ranks of 10, 30, and 50, it is assigned an inventory priority rank of 10. If order line matches none of the inventory priority rules, or if no rules have been established for the business unit, the order line is assigned to a system-defined inventory priority rank of 999.
Order lines assigned the same inventory priority ranking are then sequenced using the Final Sort option specified for the business unit on the Setup Fulfillment-Reservation page. Options include scheduled ship date, order number, or (for orders created in PeopleSoft Order Management or interunit transfers created in PeopleSoft Supply Planning) the shipping priority. These options represent the top level of multilevel, hierarchical sort criteria for order lines.
How Order Lines Are Sequenced for Other Fulfillment Processes
The inventory priority ranking and final sort order are used only for sequencing demand lines processed by the reservation processes. Demand line sequence on a pick batch ID is determined by the picking sort options specified with the Order Release process.
Demand lines on the Shortage Workbench are sequenced by schedule date and time, ship to customer name or location, order number, order line number, and schedule line number. Demand lines on the Picking Shortage report are sorted by item ID, schedule date and time, ship to customer ID or location, and order number. Demand lines in the Item/Product Availability inquiry component are sorted by scheduled shipment date only.