Supply Allocation

Supply Allocation matches inventory supply sources to demand sources. This feature enables you to meet demand requirements with the right product, amount, and location, by the required date. The Supply Allocation feature can expand inventory commitment calculations to consider future inventory on supply orders in addition to current, on-hand inventory.

When you enter demand orders (sales orders or transfer orders), the allocation process also considers planned inventory orders and the supply required by date. When Supply Allocation matches demand orders with future ship dates to supply orders with future receipt dates, on-hand inventory remains available to meet demand.

Supply Required By Date

To efficiently match supply with demand, you must know the required shipping date for the product. For these calculations, you identify a Supply Required By Date on demand order lines. Then, you can calculate allocation to determine which supply sources should be used to meet the demand on specific orders by the required date. This applies to demand created from customer orders, as well as demand from transfer orders and work orders. For more information, see Setting Supply Required By Dates on Order Lines.

Allocation Strategies

Use allocation strategy records to define rules for allocating inventory. When you allocate inventory for particular types of orders, NetSuite assigns allocation strategies to order lines.

For example, you can create an allocation strategy to allocate the total ordered quantity as soon as it all becomes available. Or, you can create a strategy to allocate any portion of the full ordered quantity as close to the Supply Required By Date as possible. For more information, see Creating Allocation Strategies.

Allocation Calculation

Supply Allocation calculations assess current and future inventory supply and determine the best ways to allocate supply to the demand on orders. NetSuite bases these calculations on the allocation strategies defined on order lines. The system can perform calculations automatically based on preference settings or predetermined schedules. For more information, see Supply Allocation Calculations.

Allocation Exceptions

Supply Allocation matches supply with demand based on allocation strategies. It identifies orders that will not have a supply source to meet the demand by their Supply Required By Date. When this occurs, NetSuite generates a Supply Allocation Exception to warn you that demand may not be met in time. For more information, see Supply Allocation Exceptions.

Item Types

Supply Allocation works with current and future inventories an supports the following Item Types:

Inventory Items
Assembly Items
Kit/Package Items (only in sales orders)

Supply Required By Date

Allocation Strategies

Allocation Calculation

Allocation Exceptions

Item Types

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