Backorder handling

When inventory is not available for an order line, it is backordered. When an order line is backordered it normally needs to wait for scheduling to locate available inventory.

For certain business requirements, backordered lines need to be handled differently.

For example:

  • A line requires that a single node is used for fulfillment. If it is partially backordered, it may be required that the backordered quantity is split into a different line and the scheduled quantity moves forward with execution.
  • A line on backorder should be backordered to a node based upon sourcing setup (which is the closest to the shipping location or is the highest priority node). In this scenario, it is required that the most optimal ship node is located and used for the backordered line.

Sterling Order Management System Software provides this functionality using additional rules at Enterprise and Document Type combination.

Split on backorder of line with firm predefined node

This rule applies only when the Use Single Node For Line Fulfillment rule is enabled. With this rule, the system splits any order line with a firm pre-defined node that is being partially unscheduled or backordered). The quantity being unscheduled or backordered is split into a new line.

Split on backorder of line without firm predefined node

This rule applies only when the Use Single Node For Line Fulfillment rule is enabled. With this rule, the system splits any order line without a firm pre-defined node that is being partially unscheduled or backordered. The portion being unscheduled or backordered is split into a new line.

Backorder line to the highest priority ship node

This rule is only considered if Use Single Node for Line Fulfillment is enabled and the ship node is not a firm node. This rule backorders a line to a node which is the best choice for fulfilling this line based upon the sourcing setup. Since inventory is not available at any ship node, the system attempts to find the optimal ship node without performing any inventory checks. If the line is completely backordered, the new node is stamped on the order line.

This rule is used only during the schedule and release process.