Guidelines for Allocating Supply in a Hierarchy

Use these guidelines to help you set up your hierarchy.

  • You can include up to three levels in your hierarchy.
  • You can assign nodes from one, two, or three levels for each sales order.
  • You must assign at least one node from each level in the hierarchy to your sales order.
  • Promising allocates supply for each week, and you can set up your allocation rule so its in effect starting on Monday and ending on Sunday.
  • If you create an allocation rule but don't create a sourcing rule for an item, and if you don't assign any node to the sales order and add the item to the order, then Promising can't get any supply for the item. Promising will instead use the Infinite Availability attribute on your ATP rule or the end of the horizon to determine where to get supply.
  • Promising considers allocation only according to a percentage, so make sure you set the Specification Type attribute to Percentage on the Manage Supply Allocation Rules page. You can also set this value in file-based data import or REST API.
  • If you use REST API to import your allocations as quantities, then Promising uses them after it makes adjustments. For example, if the total allocation is greater than the total supply, then Promising reduces each allocation.
  • Make sure the sum of your allocation percentages equals 100% across your hierarchy.
  • You must collect sales orders each time you modify an allocation rule, such as modifying an allocation percentage, rank, shipment history, dates, and so on.
  • If you're fulfilling a configured item, you can allocate supply only for the entire configured item. You can't allocate supply for a component in a configured item or for a resource.

For details and examples, go to REST API for Oracle Supply Chain Management Cloud, then expand Supply Chain Planning.

Set the Rank

  • Promising consumes allocated supply starting with the node that has the lowest rank in the hierarchy.
  • A rank with a numeric value has a higher priority. For example, if you create ranks 1, 2, and 4, then 2 has a higher priority than 4, and 1 has a higher priority than 2.
  • A higher priority node can get supply from a lower priority node, but a lower priority node can't get supply from a higher priority node.
  • A node that has the same rank can't get supply from another node that has the same rank. For example, if you rank node x as 4, and you rank node y as 4, then x can't get supply from y, and y can't get supply from x.
  • If you don't specify a rank on a node, then Promising considers it as the lowest priority. All other nodes on the same level can take supply from this nonranked node, but the nonranked can't take supply from any other node anywhere in the hierarchy.
  • Promising treats a rank of zero the same way it treats a nonranked node, plus a zero node can't get supply from another zero node.

Reserve Supply on a Node

As an option, you can use the Stealing Protection Percentage attribute to reserve supply for a node.

Assume you set Stealing Protection Percentage on the Northwest node to 20 because you want to keep 20% of Northwest's supply in reserve for sales orders that you create in the Northwest. 20 units are available to allocate in Northwest, so 4 units are in reserve:
  • 20% of 20 allocated units equals 4 reserved units

Promising will get only 16 units from Northwest:

  • 20 allocated units minus 4 reserved units equals 16 units

This helps to make sure that you distribute supply equitably across nodes.

If you want to reserve all the supply in a node, then set Stealing Protection Percentage to 100 for that node.

Specify the Shipment History

Promising can consider your shipping history when it calculates allocation. This is most useful when you have a promotional event or marketing campaign.

  • Go to the Order Promising work area, click Tasks > Manage Supply Allocation Rules, click Date Range to Consider Shipping History, then create the date range. Promising will consider shipped orders that happen during this range.
  • To control the number of days to consider shipping history instead of a range, go to the Maintain Supply Network Model page, then set the value in the Past Due Sales Order Days attribute in the Organization area.
  • Make sure the interval that you specify when you collect shipped sales orders matches the duration of your campaign.
  • Make sure you use and maintain the same allocation percentages for all of your allocations during the entire duration of the campaign.