Understanding Fulfillment Rules

The amount of safety stock that you choose to keep on hand can significantly impact your business. If you have too much safety stock, the inventory holding cost increases. Additionally, storing products for too long increases the potential of damage during the warehousing process and some products can spoil or have an expiration date. On the other hand, not having enough safety stock can result in lost sales and unsatisfied customers. Thus, efficient management of safety stock is essential.

The Fulfillment Rules program (P4277720) enables you to set up fulfillment rules that the system uses in the Auto Fulfillment Processing report. The fulfillment rules enable you to manage your safety stock by assigning inventory based on two components—score and safety stock percentage. When processing fulfillment rules, the system evaluates these components to determine whether to apply the fulfillment percentage.