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what is product allocation

Former Member
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Hi All,

Can somebody help me in understanding product allocation?

Is it something like a % of production that can be provided to a customer?

For example even if you get 100 pc in ATP check for the loc/prod.But to customer 'A' you can give only 70 % so you will offer partial fullfillment of sales order and propose a next date for remaining 30 %?

Please explain in simple words and example.Gain full points for the clarification.

thanks in advance,

chandan dubey

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi.......

In simple words, allocation of product to customers or regions. It is controlling mechanism for enabling competitive order processing that guarantees efficient and timely delivery of the required order quantity to the customer.

This can be use along with ATP checking. In normal situation, the system can carry out availability check against ATP quantity, if ATP quantity is not available within checking horizon, system will confirm all the quantity. If you have maintained product allocation system will check against the allocation quantity. This ensures that system will not confirm all requirements on first come basis. It also will give priority to late requirements for important customers

Shyam

Former Member
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Thanks for the resolution !!

Answers (1)

Answers (1)

Former Member
0 Kudos

<b>Product Allocation</b>: You can allocate products or components that are in short supply to customers, markets, orders, and so on. The ATP calculation and response take these allocations into consideration.

Aanand.....