Item-based allocation (IBA) is a process that reallocates the uncommitted and committed demands for items of existing orders to more suitable supplies based on user configuration and supply and demand changes in the system.
Sterling Order Management provides two types of item-based allocation options:
- FIFO prioritization, giving orders that are placed first a higher priority than those placed later.
- User-configured prioritization based on order attributes, giving the specified orders higher priority than others
When user-configured IBA priorities are not set, or they are set and completed, Sterling Order Management defaults to system-configured IBA priorities.
This subsequent sections describe both types of IBA.
Note: When an order is an ASAP order, the ETS/ETD will be the current date. If you have initially scheduled it against a PO supply, and you get a better supply before the Purchase Order’s date, but after today, then it will put the order on hold. When it is a delivery order, the ETS/ETD will be the appointment's date. So, it will put the order on hold only if a better inventory is available after the appointment's date.