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Does final adjusted production allocation key figure impacted on other key figures?

S0023624120
Explorer
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Dear all,

Currently I did not understand the meaningful of Final Product Allocation key figure except for using to order confirmation step.

However, I think after adjusting production allocation quantity, it should lead to change of production planned qty or stock transfer requisition qty because if case of increasing product allocation qty, we have to increase capacity and increate production. However, currently , after changing it, it does not impact on anything.

Please kindly share your experience.

Many thanks,

Jenny

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Answers (1)

Answers (1)

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Hello Jenny

The Allocation is just a constraint, that is considered during the sales order confirmation Process and it can also be seen as maximum limit by which the supply is commited against sales orders. Allocation itself doesn't act as trigger for new PR, STR generation. The trigger for new Plan still should come from new sales Order/additional forecast etc.,

The general practice to get this Allocation information is to copy from "Constrained Forecast" using copy operator into "Allocation Key-Figure" and making meaningful adjustments to limit allocations to certain customers/locations based on preferences.

For eg:

Scenario 1:

Sales Orders (Customer A)120, Constrained Forecast -120, Allocation Adjusted 100- Here even though enough supply is available, system will treat allocation as Constraint and look to confirm sales orders in subsequent buckets for this customer where enough allocation is available, subject to sales order confirmation mode.

Scenario 2:

Sales Orders (Customer A)120, Constrained Forecast -80, Allocation Adjusted 120- Here even though enough allocation is artifically increased without back up of supply etc., system might look to meet it in subsequent periods provided enough supply is available/ can be planned. So, allocation doesn't guarantee supply. Its merely constraint. Its the demand trigger that causes additional supply plan as part of planning run