Generate Capacity Alert

IPO checks the projected inventory for the destination on the receipt date, including the planned movement, against each applicable capacity rule. The capacity check is for the total merchandise covered by a rule. A narrower merchandise rule can therefore identify an exception even when a broader rule does not. The rule's effective dates and enabled state determine whether IPO applies it.

Example: A rule set at department level allows 500 total units with a 10% tolerance. The allowed amount is 550 units. A total projected inventory of 508 units for the entire department stays within the limit; 575 units exceeds it. The tolerance is extra room above the stated capacity: 500 × (1 + 10%) = 550.

Orders with a capacity exception do not auto approve. A capacity rule identifies an order that needs a decision; it does not, by itself, change the recommended quantity to fit the limit. The planner must make the approval decision. Review the on hand, expected receipts, sales and order quantity before deciding whether to change the order or accept the overage.