Inventory allocation based on segmentation

When doing inventory allocation based on segmentation, the application considers the unsegmented inventory also as a secondary option to fulfill orders or demands for custom segment types. However, segmented inventory is always given priority for such demands.

It allows you to create custom segment types and define whether the custom segment type can consume inventory from the unsegmented inventory or not. Unsegmented inventory is considered only when the segmented inventory is not sufficient to fulfill the orders. You can create the custom segment types using Sterling Business Center application.

Following changes are made to the inventory look-up and order fulfillment functionality to support inventory allocation based on segmentation:
  • The inventory look-up with a custom segment type specified returns the segmented and unsegmented inventory matching the request.
  • Order fulfillment functionality first considers the segmented inventory to fulfill the order. If the order cannot be fulfilled, then it considers the unsegmented inventory.
    Note:
    • In a scenario where segmented inventory alone is not sufficient to fulfill the demand, the order fulfillment process does not necessarily choose the option that uses the least unsegmented inventory.
    • Segment types MTC or MTO should not be configured to use this feature.
    • The supply for unsegmented/segmented inventory must be corrected after Confirm Shipment transaction, since it deducts the supply for only segmented inventory. For example, let us consider that you have 10 units of segmented supply and 5 units of unsegmented supply. If there is an order for 15 segmented quantity, demand is created for 15 segmented quantity. While shipping even though 5 units of unsegmented inventory is consumed, upon execution of Confirm Shipment transaction, the segmented supply is deducted by 15, creating -5 segmented supply and 5 unsegmented supply. Therefore, you must implement the ON SUCCESS event of the Confirm Shipment transaction to correct the supply picture.

What to do next
Enable the inventory segment rule and create the custom inventory segment types. For more information, see Managing inventory segments and segment rule.