Product Allocation & Availability

Check
 Product Allocation
• Demand is high and supply is low.
• Product Allocation is putting a limit on how much each customer can
purchase.
• SD generates the requirement but product allocation will be done on the PP
side.
• Example: If a customer is allocated 40 units for a month. Every week the
customer places an order for 10 units but on the 4 th week, the customer
places an order for 20 units. In this scenario, the system will go and check
the quantity that was allocated to this customer and also how much was
consumed which in this case is 30, so the customer is only eligible to place
an order for 10. Therefore, the system will only confirm the sales order for 10
units even though the customer asked for 20 units.
• Product Allocation can be done daily, weekly, monthly etc. depending on the
business requirement.
 Availability Check

• Availability Check is the quantity that I can confirm to the customer.

• Availability Check is the integration between SD & MM.
• Example –
• Material Availability Date
• 3 types
- With ATP logic
- Against Product Allocation
- Rule Based