1. SCM (Supply Chain Management)
  2. Inventory Management
  3. Advanced Inventory Management
  4. Supply Allocation
  5. Supply Allocation Management
  6. Creating Allocation Strategies
  7. Allocation Strategy Examples

Allocation Strategy Examples

The following image shows how NetSuite allocates inventory based on the values set in the Allocation Method, Allocation Quantities, and Allocation Period fields.

Consider a sales order line that has a quantity of 100 units of Item_1:

If Allocation Method is Earliest and Allocation Quantities is Available Quantity, NetSuite allocates Supply 1 in Week 1 to the sales order line. Supply 1 represents the allocation of a partial quantity of inventory as soon as it's available before the Supply Required by Date.

NetSuite allocates Supply 3 or Supply 4 to the sales order line based on the alternate methods and quantities. Supply 3 represents the allocation of the total quantity of inventory for the sales order, close to the Supply Required by Date. Supply 4 represents the allocation of a partial quantity of inventory as close as possible to the Supply Required by Date.

Use the Allocation Period field to limit the allocation of inventory by defining a specific period before or after the Supply Required by Date. In this example, NetSuite would not consider Supply 1 for allocation when the Allocation Period is 14 days before the Supply Required By Date. You can also use the Allocation Period option to limit allocation of future supplies arriving later than the Supply Required By Date.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

For more information, see Creating Allocation Strategies.

Additional control to fulfillments when serving large retail brands

  1. Enabling Supply Allocation.

  2. To open an existing allocation strategy, go to setup> Order Management > Order Allocation Strategies.

  3. In the Order Allocation Strategies page, click Edit beside the strategy you want to use.

  4. In the System Notes subtab, in the Field list, select Freeze Allocation when Firm.

  5. To stop allocation, check the Commitment Confirmed Stops Allocation on Order Line box.

  6. Click Save.

  7. To open the Allocate Orders page, go to Transactions > Order Management >Allocate Orders.

  8. This example displays the following:

    • Subsidiary is Parent

      .

    • Location is US ONLY

      .

    • Item is Main Retails’ Favorite Pie

      .

    • Filter your customer name search by US Cust

      .

    • Open the sales order related to this allocation strategy.

      The displayed Allocation Strategy is Freeze Allocation when Firm.

      Often customer locations have a default strategy assigned. For example, Freeze Allocation when Firm on the line.

  9. Return to the Back to Allocate Orders and refresh the page.

    In the US-Cust order lines, the first order line displays allocation firmed.

Related Topics:

Creating Allocation Strategies

General Notices