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The following example illustrates the process involved in the allocation of merchandise via a distribution center. Part of the quantity required can be covered by stock on-hand, allowing you to reduce the quantity ordered from the vendor. The quantity ordered from the vendor is to be cross-docked at goods receipt in the distribution center.

  1. An allocation table is created with an item for 1000 pieces of article R100000. The stock is split between two stores in the allocation table as follows:

The stores are supplied by distribution center R300. Since the distribution center still has 400 pieces of the article on-hand, this is to be used for the allocation. The quantity ordered from the vendor by the distribution center is therefore reduced to 600 pieces for the allocation table item.

  1. The first document generated following on from the allocation table is the vendor purchase order 1 for 600 pieces of article R100000. This quantity is entered in the data for the merchandise distribution as the planned procurement quantity.
  1. The following warehouse orders are also generated as follow-on documents:
  1. The vendor delivers the quantity ordered to the distribution center. A goods receipt is posted for 600 pieces.
  1. The goods receipt is cross-docked and distributed proportionally between the recipients. The following deliveries are then generated for the recipients via the Generation of Deliveries for Merchandise Distribution function (transaction WF60):
  1. In connection with Merchandise Distribution, issue documents (that is, warehouse orders 1 and 2) are blocked for delivery generation using the collective processing of due documents function (transaction VL10B). You therefore have to select and unblock the warehouse orders in the Merchandise Distribution monitor (by choosing Edit ® Issue documents ® Unblock delivery due list).
  1. The remaining 400 pieces are allocated out of stock. For this purpose, the following deliveries are generated via the collective processing function for due documents:

 

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