We have a problem with the reservations logic employed during sales 
order entry.  The scenario:
 
Sales orders automatically reserve stock when they are posted. 
Stock is allocated to the order strictly on a FIFO basis (date 
controlled or batch#), disregarding picking efficiency.  When the 
shipment and pick list are later created, the reservation is 
automatically recalculated to select whole pallets wherever 
possible.  But there are problems when there is an intervening order 
for a part pallet.

Example: 

The warehouse contains the following pallets (oldest product first):

         Pallet 1 50 cases (part)
         Pallet 2 60 cases (full)
         Pallet 3 60 cases (full)

Order 1 is for 120 cases. The sales order will reserve all of 
pallets 1 and 2, and 10 cases from pallet 3. If there is no further 
order, then the shipment will be created selecting pallets 2 and 3, 
which is correct.

Now however, if order 2 comes in for 50 cases (or less) before order 
1 has been shipped, the sales order reservation logic will allocate 
cases from pallet 3.  If order 2's shipment and picking list are 
created before those for order 1, then dispatch will be required to 
split pallet 3 since pallet 1 (the obvious choice) is reserved for 
order 1.  This is bad!

I see the possibilities for resolution as follows:

1. The best resolution for this is to have a reservation (in Sales 
Order entry) that only reduces the "Available to Promise" quantity 
of stock (to prevent salespeople from promising the same stock to 
more than one customer!).  It should NOT reserve specific physical 
items or pallets against the sales order.  This may of course not be 
an available feature, so the alternative is:

2. Make sure that the Sales Order reservation selects full pallets 
first, instead of strict FIFO.  We will leave older stock on part 
pallets indefinitely if necessary.

Anyone have any solutions or suggestions???

Hans






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