You want to ensure that defined groups of demand do not consume too much supply.
For example you want to ensure that there is enough supply left over when an important customer places an order late.
You might need to take care of capacities and therefore want to ensure not too many orders are confirmed for the same date.
Advanced ATP and Supply Assignment
The figure illustrates the position of PAL in the complete process.
Relevant customizing is maintained in IMG → Cross-Application Components → Advanced Available-to-Promise (aATP).
Product Allocation (PAL) - Concept
- Restrict defined demand elements from consuming too much supply
- Thus leaving supply for other demand
- Keep common stock without physical separation
How it works:
- Use Product Allocation (PAL) in advanced ATP
- Record maximum allowed quantities per demand / demand groups
- Availability check (ATP) and supply assignment (ARun) consider the unconsumed PAL and confirm / assign only those quantities which are allowed
Product Allocation - Examples
Maximum order quantities for demand from north and south Europe is defined. Wholesale customers from north Europe will be confirmed up to 200, south European wholesale customers can order up to 100. Any other demand which is not N.Europe/Wholesale or S.Europe/Wholesale can order without being restricted by PAL. Any other demand could order the complete available supply of 500 if ordering first.
For wholesale customers from north or south Europe the situation is the same as in example 1. But now also retail demand is restricted by PAL. Regardless of the sales organization (# means "any") the retail channel can only order up to 200. Again, if there would be demand from other sales org./channel combinations, e.g. an online channel those orders would not be restricted by PAL
Situation described in example 2 remains (retail is reduced to 100 though) but now there is an additional restriction: demand from any sales org. / any channel will only be confirmed up to 100.
Examples with Time Series
The example above shows PAL setup with a time series. A wholesale order with requested delivery in May would be confirmed up to:
- 150 if neither backward nor forward scheduling is set up.
- 250 if only backward scheduling is set up.
- 350 if only forward scheduling is set up for + 1 month.
- 500 if only forward scheduling is set up for + 2 months (or more).
- 600 is both backward and forward scheduling is set up.
- In the case of short supply orders placed earlier will get confirmed up to the PAL quantities while those placed later might not find enough supply to reach the PAL quantity
- In the case of excess supply no order would be able to consume it
Examples with Sequences
- On first level wholesale customer "NY" could be confirmed up to 100, "key account 1" up to 200 and any ("#") other customer cannot be confirmed at all because no quantity is maintained
- On the second level any wholesale customer can be confirmed up to a quantity of 200. Explicit customers defined in level 1 could access the level 2 quantity as well.
- On first level wholesale customer "NY" could be confirmed up to 100, retail "store 1" up to 200 any other retail store up to 500.
- On the second level any wholesale customer can receive 200 (also "NY" can access this bucket) and any retailer (also "store 1" can access 300.