Algorithm Calculations

When you run the Generate Allocation and Delivery Proposals program to generate allocation proposals, the algorithm:

1. Extracts sales order detail lines based on the Next Status From processing option value of 540 and Minimum Order Quantity processing option value of 5. The system extracts the following sales order lines:

   Child Style Item	Ordered Quantity	Available Quantity	Sales Order Number	Next Status
   JEANS4.CTN.BLU.XS	100	80	11181	540
   JEANS4.CTN.BLU.S	100	40	11181	540
   JEANS4.CTN.BLU.M	100	30	11181	540
   JACKET.BLK.S1	100	45	11181	540
   TIE.BLK	100	55	11181	540
   JEANS4.CTN.PURP.XS	100	30	11190	540
   JEANS4.SPX.PURP.XS	100	30	11190	540

2. Sorts the extracted sales order detail lines according to the priority rules as identified by the Priority Commitment Rule processing option on the Priority Rule tab.

   Order extract before sorting:

   Child Style Item	Sales Order Number	Available Quantity	Customer Number
   JEANS4.CTN.BLU.XS	11181	80	4242
   JEANS.CTN.BLU.S	11181	40	4242
   JEANS4.CTN.BLU.M	11181	30	4242
   JACKET.BLK.S1	11181	45	4242
   TIE.BLK	11181	55	4242
   JEANS4.CTN.PURP.XS	11190	30	4343
   JEANS4.SPX.PURP.XS	11190	30	4343

   The customers have the following category code setup:

   Customer Number	Category Code - AC01 Value	Priority Value Set in PCW23
   4242	115	2
   4343	110	1

   Order extract after sorting:

   Child Style Item	Sales Order Number	Available Quantity	Priority Value	Customer Number
   JEANS4.CTN.PURP.XS	11190	30	1	4343
   JEANS4.SPX.PURP.XS	11190	30	1	4343
   JEANS4.CTN.BLU.XS	11181	80	2	4242
   JEANS4.CTN.BLU.S	11181	40	2	4242
   JEANS4.CTN.BLU.M	11181	30	2	4242
   JACKET.BLK.S1	11181	45	2	4242
   TIE.BLK	11181	55	2	4242

3. Determines the proposed quantity with a sprinkling rate of 60% and fair share set to N. The system performs the following calculations:

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity Proposed Quantity = Ordered Quantity x Sprinkling Percent
   JEANS4.CTN.PURP.XS	100	30	60
   JEANS4.SPX.PURP.XS	100	30	60
   JEANS4.CTN.BLU.XS	100	80	60
   JEANS4.CTN.BLU.S	100	40	60
   JEANS4.CTN.BLU.M	100	30	60
   JACKET.BLK.S1	100	45	60
   TIE.BLK	100	55	60

4. Determines retained quantities.

   For every sales order detail line, the retained or allocated quantity represents the minimum between the available quantity and proposed quantity. The system determines the following retained quantities:

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   JEANS4.CTN.PURP.XS	100	30	60	30
   JEANS4.SPX.PURP.XS	100	30	60	30
   JEANS4.CTN.BLU.XS	100	80	60	60
   JEANS4.CTN.BLU.S	100	40	60	40
   JEANS4.CTN.BLU.M	100	30	60	30
   JACKET.BLK.S1	100	45	60	45
   TIE.BLK	100	55	60	55

5. Applies the for Order Line processing option on the Satisfaction Rate tab using size weights.

   The size weights are set as 1 for size 01, 3 for size 02, and 2 for size 03. The satisfaction rate on the for Order Line processing option is set at 65%.

   The system uses the following order information to perform calculations:

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   JEANS4.CTN.BLU.XS	100	80	60	60
   JEANS4.CTN.BLU.S	100	40	60	40
   JEANS4.CTN.BLU.M	100	30	60	30
   JACKET.BLK.S1	100	45	60	45
   TIE.BLK	100	55	60	55

   For the attribute CTN and color BLU, you perform the following calculations:

   (intermediary variable) Total Proposed Quantity = 60 x 1 + 60 x 3 + 60 x 2 = 360

   (intermediary variable) Total Retained Quantity = 60 x 1 + 40 x 3 + 30 x 2 = 240

   Total Retained / Total Proposed = 240 / 360 = 67% Because 67% is greater than the satisfaction rate of 65%, the system retains the order lines.

   The system uses the following order information to perform calculations:

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   JEANS4.CTN.PURP.XS	100	30	60	30
   JEANS4.SPX.PURP.XS	100	30	60	30

   For the attribute CTN and color PURP, you perform the following calculations:

   (intermediary variable) Total Proposed Quantity = 60 x 1 = 60

   (intermediary variable) Total Retained Quantity = 30 x 1 = 30

   Total Retained / Total Proposed = 30 / 60 = 50% Because 50% is less than the satisfaction rate of 65%, the order line is not retained.

   The calculations are the same for attribute SPX and color PURP so that order line is also not retained.

   The result from this step of the allocation calculation is that the JEANS4.CTN.BLU.XS, JEANS4.CTN.BLU.S, JEANS4.CTN.BLU.M, JACKET.BLK.S1, and TIE.BLK order lines are retained.

6. Applies the value in the For Level 4 Item processing option on the Satisfaction Rate tab with no size weighting.

   The system does not perform any calculations because this processing option was not set.

7. Applies the value in the For Level 3 Item processing option on the Satisfaction Rate tab with no size weighting.

   The system does not perform any calculations because this processing option was not set.

8. Applies the value in the For Level 2 Item processing option on the Satisfaction Rate tab with no size weighting.

   The system does not perform any calculations because this processing option was not set.

9. Applies the value in the For Level 1 Item processing option on the Satisfaction Rate tab with no size weighting.

   The satisfaction rate on the For Level 1 Item processing option is set at 50%.

   The system uses the following order information to perform calculations:

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   JEANS4.CTN.BLU.XS	100	80	60	60
   JEANS4.CTN.BLU.S	100	40	60	40
   JEANS4.CTN.BLU.M	100	30	60	30

   For style item root level 0 JEANS4 and attribute CTN, you perform the following calculations:

   (intermediary variable) Total Proposed Quantity = 60 + 60 + 60 = 180

   (intermediary variable) Total Retained Quantity = 60 + 40 + 30 = 130

   Total Retained/Total Proposed = 130 / 180 = 72% Because 72% is greater than the satisfaction rate of 50%, the order lines are retained.

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   JACKET.BLK.S1	100	45	60	45

   For style item root level 0 JACKET and attribute BLK, you perform the following calculations:

   (intermediary variable) Total Proposed Quantity = 60

   (intermediary variable) Total Retained Quantity = 45

   Total Retained/Total Proposed = 45/ 60 = 75% Because 75% is greater than the satisfaction rate of 50%, the order line is retained.

   Child Style Item	Ordered Quantity	Available Quantity	Proposed Quantity	Retained Quantity
   TIE.BLK	100	55	60	55

   For style item root level 0TIE and attribute BLK, you perform the following calculations:

   (intermediary variable) Total Proposed Quantity = 60

   (intermediary variable) Total Retained Quantity = 55

   Total Retained/Total Proposed = 55/ 60 = 91.66% Because 91.66 % is greater than the satisfaction rate of 50%, the order line is retained.

10. Applies the value in the for Level 0 Item processing option on the Satisfaction Rate tab with no size weighting.

    The system does not perform any calculations because this processing option was not set.

11. Applies the following processing for every order if the Top/Bottom Management (Y/N) processing option on the Top/Bottom tab is set to Y.

    The Item Category Alias Top/Bottom processing option is set to SRP7 and the Tolerance Limit (in %) is set to 10 percent.

    Special handling code 1 is for top and special handling code 2 is for bottom.

    The system uses the following order information to perform calculations:

    Child Style Item	Proposed Quantity	Retained Quantity	Category Code (SRP7) Value	Special Handling	Top/Bottom
    JEANS4.CTN.BLU.XS	60	60	200	2	B
    JEANS4.CTN.BLU.S	60	40	200	2	B
    JEANS4.CTN.BLU.M	60	30	200	2	B
    JACKET.BLK.S1	60	45	100	1	T
    TIE.BLK	60	55	400	blank	NA

    Total Bottom Retained Quantity (BQR) = 60 + 40 + 30 = 130

    Total Bottom Proposed Quantity (BQP) = 60 + 60 + 60 = 180

    Fill rate for bottom items = 130 / 180 = 72%

    Total Top Retained Quantity (TQR) = 45

    Total Top Proposed Quantity (TQP) = 60

    Fill rate for top items = 45 / 60 = 75%

    Top fill rate = 75%

    Bottom fill rate = 72%

    Allowed percentage from the processing option is 10%.

    If the bottom fill rate is less than the top fill rate, then all bottom items are retained. The bottom fill rate of 72% is less than the top fill rate of 75%, so the system retains the bottom items.

    Ratio correction = bottom fill rate + [(bottom fill rate x Allowed %) / 100]

    Ratio correction = 72 + [(72 x 10) / 100] = 79.2%

    For every top line, the system calculates the retainage percentage, where Retainage Percentage = Retained Quantity / Order Quantity.

    The system uses the following order information to perform calculations:

    Child Style Item	Order Quantity	Retained Quantity	Retainage Percentage
    JACKET.BLK.S1	100	45	45

    For every top line, the system calculates a new retained quantity if the retainage percentage is greater than the ratio correction.

    New Retained Quantity = Order Quantity x Ratio Correction Else New Retained Quantity is unchanged.

    The system uses the following order information to perform calculations:

    Child Style Item	Order Quantity	Retained Quantity	Retainage Percentage	New Retained Quantity
    JACKET.BLK.S1	100	45	45	45

    This table illustrates the results after top and bottom processing:

    Child Style Item	Proposed Quantity	Retained Quantity	New Retained Quantity
    JEANS4.CTN.BLU.XS	60	60	60
    JEANS4.CTN.BLU.S	60	40	40
    JEANS4.CTN.BLU.M	60	30	30
    JACKET.BLK.S1	60	45	45
    TIE.BLK	60	55	55

12. Calculates the satisfaction rate for the Item Category Code Alias 1,Item Category Code Alias 2, and Group Satisfaction Rate processing options on the Satisfaction Rate tab.

    The system does not perform any calculations because this processing option was not set.

13. Calculates the satisfaction rate for the sales order based on the Satisfaction Rate processing option on the Process tab.

    The calculation of satisfaction rate is Satisfaction Rate = Total Retained Quantity / Total Ordered Quantity.

    The Satisfaction Rate processing option is set to 40%, so the system retains all the quantities.

    This table illustrates the results after satisfaction rate processing:

    Child Style Item	Order Quantity	Proposed Quantity	Retained Quantity
    JEANS4.CTN.BLU.XS	60	60	60
    JEANS4.CTN.BLU.S	60	40	40
    JEANS4.CTN.BLU.M	60	30	30
    JACKET.BLK.S1	60	45	45
    TIE.BLK	60	55	55

14. Applies the Minimum Quantity Allocated and Maximum Quantity Allocated processing options on the Process tab.

    The system does not perform any calculations because this processing option was not set.

15. Performs automatic validation based on the setting of the Create Automatic Validation processing option on the Validations tab of the Generate Allocation and Delivery Proposals program.

    If the Create Automatic Validation processing option is set to 1, then the program validates all lines retained for the allocation. The validated lines are hard committed to the sales order, or committed to Other SO1 or Other SO2 based on the processing option setting on the Validations tab.

    If the Create Automatic Validation processing option is blank, then no automatic validation is required and the order lines retained for the allocation are neither soft committed nor hard committed. The system adds the item quantities to the Other Sales 1 field in the F41021 table.

    You can use the Allocation and Delivery Proposals program (PCW29) to commit the retained quantity.