Allocation: Allocation Strategy 

Use

Allocation strategies allow specific customer requirements to be met in the allocation process through the use of different allocation algorithms. In Customizing, you can assign an allocation strategy to each allocation table type that the system proposes as a default whenever you create an allocation table of that type.

You can use allocation strategies as an alternative for the following procedures:

·        Allocation rules

·        Equal distribution of quantities between site groups

·        Manual entry of quantities for each site

Integration

An allocation strategy is realized in the system using a function module with a specified interface. You can define your own allocation strategies, in addition to those contained in the ERP system.

The system only uses the allocation strategy if sites exist for an allocation item.

Prerequisites

Allocation strategies (not dialog-oriented)

You have assigned function modules to the strategies in Customizing for the allocation strategies.

For more information, see Customizing for Logistics - Generalunder Merchandise Distribution → Allocation → Allocation Table → Allocation Strategies.

Allocation strategies (dialog-oriented with access to SAP BW)

·        You are using SAP Business Information Warehouse (SAP BW) and the corresponding Retail Add-On.

·        You have assigned function modules and selection screens to the strategies in Customizing for the allocation strategies.

For more information, see Customizing for Logistics – General under Merchandise Distribution → Allocation → Allocation Table → Allocation Strategies and Allocation Strategy Enhancements.

Features

The following strategies exist in the standard system

·        Equal allocation

The allocation item quantity is split up equally among all the sites.

·        Simple replenishment strategy

Allocation based on a simplified stock check. The maximum stock level in the article master is compared with the available stock in the site and the planned quantity to be ordered/delivered is calculated from the difference. The system cannot determine a planned quantity for sites that are not listed

A replenishment strategy can only be used if there is at least one site group at item level. You are not permitted to enter quantities or allocation rules for an item during replenishment allocation, as the system determines the quantity automatically.

·        Replenishment strategy including structured articles

This strategy functions in the same way as the simple replenishment strategy. It also takes structured articles into account.

For structured articles that the system splits up into their constituent components at goods receipt, the system determines the header article requirement from the consumption figures for the assigned components.

·        Distribution of the generic article quantity based on quota scales

The system uses the variant-creating characteristics of a generic article item in the allocation table to determine the relevant value and quota scales. If you have maintained quotas, the generic article is distributed among the variants and sites in line with the quotas.

·        Returns quantities from store stock

The function module implements the current stock for returns allocation strategy, determines the current stock in the stores and enters this as the planned quantity for the sites of a (returns) item.

You can only use the following strategies if you are also using SAP BW and the corresponding Retail Add-On.

·        Qutoas (SAP BW)

The strategy accesses the sales history of the article or merchandise category of an allocation table item for a certain period of time, depending on the query selected in SAP BW, and returns a quota for each site. The real allocation table quantities for recipients are calculated on the basis of a planned quantity, and using the quotas determined in SAP BW.

·        Top down (SAP BW)

The strategy provides planned quantities for the recipients of an item, based on sales quantities and data from SAP BW. The planned quantity of the item must be specified.

·        Bottom up (SAP BW)

The strategy is also based on sales quantities and data from SAP BW and calculates the plan quantities for the recipient. However, you do not enter a planned quantity for the allocation item, as in this case the planned quantity is the result of the cumulated quantities of the recipients of an item. In addition, the system can take into account sales until a certain point in time, for example, until the delivery date.

For Top Down and Bottom Up strategies, the system can take the following factors, for example, into account:

§         Sales data over a period of time

§         Putaway of a partial quantity of the total quantity in the warehouse stock

§         Trend factors for all recipients, or for allocation rules for individual recipients

§         Current stock available in the stores

§         Min/max order quantity in allocation unit

§         Open store on-order stock

§         Rounding based on the rounding profile

You can only use the following strategies if you are also using SAP BW and the corresponding Fashion Add-On.

·        Qutoas (fashion)

·        Top down (fashion)

·        Bottom up (Fashion)

On the whole, the strategies correspond to the strategies Quotas (SAP BW), Top Down (SAP BW) and Bottom Up (SAP BW). In addition, the system can take the following factors into account when determining data in SAP BW.

·        Article hierarchy or article hierarchy nodes

·        Price band category

·        Season

·        Fixed item quantity

See also:

Requirements Planning: Calculation of the Quantity Required of Header Article from the Component Quantities