In the current implementation of inventory reservation flow, inventory gets reserved for the order based on the reservation algorithm (FIFO, LIFO etc). Many times, the fulfilment cycle of the order is too long or due to some unexpected circumstances, the order holds the inventory for a long time. In such scenarios, inventory availability becomes one of the major bottlenecks in fulfilling the other sales order and businesses often remains short supplied against the demand.
We can provide a feature (Create, Find and Edit supply allocation screen) to allocate the available and any future supply judiciously amongst existing customers orders by considering different factors like estimated delivery dates, order priority, customer preference etc.
Following are the details design notes for the same:
An order in the approved status will be considered as ‘Eligible for Allocation’. The proposed supply allocation planning will have the following set of features:
Create Allocation Plan:
The authorized user will be able to initiate the process by setting the desired product.
View/Edit Allocation Plan:
1) The system would search and list all the order lines which are eligible for allocation for that particular product.
2) The user can filter and sort the orders by various parameters like Sale Channel, Customer, Order Id, Estimated Ship Date etc.
3) The user can then prioritize the order by moving up or down the given order in the priority ranking. Higher is the order in display result list, higher will be the priority it would get during reservations.
4) The user can set the ‘Allocated Quantity’ against ordered quantity at order item line level.
5) Once the Allocation Plan is submitted, the system would auto-assign the priority and set the allocated quantity for each of the submitted orders to be honoured during order reservations at any point in time.
7) Incoming shipments would be reserved by honouring the same allocation plan during order promising cycle.
8) After allocating supply as per the allocation plan, any excess stock should be reserved based on the standard FIFO method.
9) If any of the items of an order is not planned via the Allocation Plan, then also it should be reserved based on default FIFO criteria.
10) The allocation for all the sales orders should be allowed for revision unless the Shipment Plan is created against them.
Find Allocation Plan:
The authorized user can search allocation plan(s) with filters like Plan Id, Order Id, Product Id, Plan Method, Status etc.