Explaining aATP Product Allocation (PAL)

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.

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).

The idea:

• 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

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.

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.

• 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.

Configure PAL:

• Create, edit and display product allocation objects.
• Define the period types for product allocation objects.
• Define and order the characteristics for product allocation objects.
• Deactivate and delete product allocation objects and their characteristics.

Manage PAL Planning Data:

• Create, display and edit product allocation sequences.
• Combine product allocation objects as constraints for product allocation.
• Define alternative sources of product allocation by creating product allocation sequence groups and assigning product allocation objects to a product allocation constraint.
• Maintain the consumption strategy (number of backward and forward consumption periods, consumption unit and allocation factor) for availability checks against product allocation.

Manage PAL Sequences:

• Assign materials or material-plant combinations to product allocation objects.
• Define validity periods for any assignments.

Assign Product to PAL:

• Maintain characteristic values and planning allocation quantities for time periods.
• Change the activation status and constraint status of product allocation objects.
• Display the availability situation of the materials in the product allocation objects.
• Release product allocation objects and their planning data for active usage.

The example is adding a PAL bucket to the example described in the reATP section.

The difference happens in the wholesale segment which uses redistribute logic. Because now there is a PAL quantity defined for B customers the first wholesale order can only be confirmed up to 150 which leaves more stock for the second wholesale order. (Win and Gain segment anyhow consume 150 of the available supply.)