Allocation: Example of Quantity Optimizing in Allocation Tables
The following example shows the effects of optimizing quantities for the sites and distribution centers in an allocation table item.
Sites and Sources of Supply
Ship-to party |
Sources of Supply |
Site R101, R102 |
DC R001 |
Site R103, R104, R105 |
DC R002 |
DC R001 |
Vendor 2000001 |
DC R002 |
Vendor 2000002 |
Units of Measure of the Article
The base unit of measure is piece. The following table shows the alternative units of measure and how they are used. In the example, we assume that in the article logistics data of the store and distribution center a dynamic rounding profile has been created that rounds off to order units.
Alternative unit of measure |
Conversion |
Unit of measure used as: |
Carton |
= 10 pieces |
DC R001 unit of issue |
Crate |
= 12 pieces |
DC R002 unit of issue |
Small pallet |
= 100 pieces |
Order unit from vendor 2000001 |
Large pallet |
= 160 pieces |
Order unit from vendor 2000002 |
Quantity Optimizing for the Sites
In an allocation table item, the total quantity of 220 pieces is split up among the sites based on an allocation rule. The quantities ordered for each site are optimized, with the total quantity of the item increasing to 234 pieces.
Site |
Original quantities |
Optimized quantities |
R101 |
30 PC |
30 pieces = 3 boxes |
R102 |
55 PC |
60 pieces = 6 boxes |
R103 |
10 PC |
12 pieces = 1 crate |
R104 |
60 PC |
60 pieces = 5 crates |
R105 |
65 PC |
72 pieces = 6 crates |
Total |
220 PC |
234 PC |
When follow-on documents are generated for delivery to the sites (warehouse orders or deliveries), the system uses the unit of measure following optimizing. The following-on document for site R101 would therefore contain the unit of measure box.
Optimizing Quantities for Distribution Centers
After the system optimizes the quantities for each site, it adds up the optimized site quantities per distribution center. If DC R001 supplies 3 boxes to site R101, for example, and 6 boxes to R102, that is a total of 9 boxes (90 pieces), the system would increase the quantity ordered for the distribution center to 260 pieces. The quantities ordered for each site are optimized, with the quantity to be ordered externally increasing to 260 pieces.
DC |
Site quantities in pieces |
Total site quantities in pieces |
Optimized quantity |
R001 |
30 + 60 |
90 |
100 pieces = 1 small pallet |
R002 |
12 + 60 + 72 |
144 |
160 pieces = 1 large pallet |
Total |
234 |
234 |
260 |
The difference in quantity between the order quantity (260 pieces) and the distribution center quantity (234 pieces) can be split up among the sites in the allocation table, as long as the order unit for the vendor is a multiple of the unit of issue of the distribution center.
The quantity of 10 pieces that remains with DC R001 is equal to a box and can therefore be allocated. The quantity of 16 pieces that remains with DC R002 is equal to a box plus 4 pieces. The box can be allocated. The quantity that remains (4) cannot be split up-and can and has to be put into storage in the distribution center.
How are Schedule Lines Managed?
If schedule lines (delivery phases) exist for a site and the item quantity changes as a result of optimizing, the system also changes the quantities per schedule line in accordance with the percentage split. If the unit of measure has changed as a result of optimizing, rounding off to whole units can lead to a change in the percentage split.
The following table shows how the stock-split for the site R102 changes for two schedule lines:
|
Delivery date |
Delivery date |
Total | |
Percentage split before optimizing |
60% |
40% |
100% |
Schedule line quantity after being optimized but before being rounded off |
3.6 cartons |
2.4 cartons |
6 cartons |
Schedule line quantity after being optimized and rounded off |
4 cartons |
2 cartons |
6 cartons |
Percentage split after optimizing |
67% |
33% |
100% |