Summary
The Allocation Wizard is a tool to allow automatic adjustments of your unconstrained replenishment plans down to what can be executed. The most common uses for this are:
- Adjust an unconstrained transfer plan downwards based on what the sending warehouse has available
- Adjust an unconstrained production plan down to what can be made based on component availability
It is accessible from Step 2 of the Place Orders wizard, by clicking Edit --> Allocation Wizard.
NOTE: This menu option is only available when your ordering source is a warehouse or a manufacturing facility.
Steps
The allocation wizard has several options, depending on your business needs:
Allocation Source Quantity - This value determines what is the starting point for the allocation work to be done:
- On Hand - This allocation quantity type distributes between what is On-Hand-To-Transfer at the
sending location. Be aware this ignores previous inventory allocations! - Current Available - This allocation quantity type distributes between what is Current-Available-To-Transfer at your source location. This does not account for forecasted demand. Note that if you've enabled the "Include Available-To-Build in your available to transfer number, it will do so.
- Projected Available - This allocation quantity type distributes between what is Projected-Available-To-Transfer at your source location, accounting for all projected supply and demand.
- Excess - This allocation quantity type distributes between what is Excess-To-Transfer at your source location.
Allocation Type - This specifies the rules, or strategy by which the Allocation Wizard will distribute quantity from the allocation source quantity:
- By Projected Days Cycle Stock - This allocation method distributes inventory to the requesting locations by prioritizing those with lowest projected days of cycle stock first, to ensure inventory is going where it is currently needed most, based on how far below its safety stock level (stated in terms of number of days) it is.
- By Highest Usage - This allocation method distributes inventory to the requesting locations by prioritizing those with highest usage first. This sends inventory to where it will be consumed the
most quickly, but does not take into account the current inventory position. - Equal Percent Distribution - This allocation method distributes inventory to all locations that are in need by percentage of the total demand that the source location is able to fulfill, so that
all locations receive at least some inventory to help service demand.
Prioritize Sites With Open Firm Demand - This allows you to specifically prioritize and fulfill sites that have firm demands (e.g. backorders or sales orders), to ensure those are filled first, despite what forecast might say.
Limits
- Obey Order Minimums - requires that allocation wizard honors the MinimumOrderQuantity for this item-site-supplier
- Obey Order Multiples - requires that allocation wizard honors the Order Multiple Quantity for this item-site-supplier
- Allow Changes to quantities I have already edited - When enabled, SIQ will adjust lines that you've already overridden. When disabled, no changes will be made to lines for which you have edited the release quantity manually.
- Remove Lines that cannot be completely fulfilled - This will remove lines from the order completely if they cannot be 100% filled. This generally means you will try to satisfy that demand by some other method, e.g. ordering direct from a vendor instead of a transfer etc.
When you have specified the inputs that you like, click the "Next" button. The allocation wizard will run, and show you the new lines. You can click the "Changes" tab to specifically see what lines were changed, and how.
If you like the result of the Allocation Wizard, click "Apply Changes", and the changes will be applied back into the main Place Orders window for further processing.