Understanding Pegged Supply and Demand

Pegging links demand to incoming supply. You can create a peg chain between a supply transaction and a demand transaction from either side. Only soft-reserve items can be pegged when working with material stock requests and sales orders.

When pegged supply is received and putaway into a PeopleSoft Inventory business unit, the Complete Putaway process reserves or pre-allocates the putaway quantity to an outgoing demand (materials stock request, interunit transfer, sales order, or work order). This prevents the incoming supply from being used to fulfill another demand transaction. The Complete Putaway process performs a soft-reserve or pre-allocation based on your setting in the Pegging Setup page or the Pegging Item Setup page. The outgoing pegged demand line is still in the unfulfilled state, except for work order demand lines that stay in the pending state. The pre-allocation reserves quantity both at the business unit and the material storage location levels for the order line and inserts the demand line for the allocated quantity into the IN_DEMAND table. The soft-reservations is the same as the soft reserve described earlier in this section.