Scenario: Inventory allocation for the same item across multiple order lines or same-node assignments

The Optimization service supports the same item or SKU across multiple lines in an order. Support is also provided for the same item with different ship dates across multiple, same-node assignments. This scenario applies to orders that, for example, can't be fulfilled from a single node and are rescheduled. This results in the same item being split into multiple order lines or assignments. If the split results in the item being assigned to the same node, either from the same or different lines, the node's available inventory is shared across assignments.

Inventory allocation for the same item in multiple order lines

The following scenarios describe how the Optimization service processes the orders that contain the same item across multiple order lines. These rescheduled orders contain the same SKU or item across multiple order lines. To fulfill these orders optimally, the Optimization service considers the inventory that is available, the shipping costs, the stockouts avoidance costs, or additional optimization parameters.

Scenario 1: Sufficient inventory to fulfill both order lines

In this example, the Optimization service processes a rescheduled order for two order lines of shoes that are available in a store in New York for fulfillment. There is enough inventory available to fulfill this order across each order line separately or across both order lines together.

Table 1. Fulfilling multiple order lines with sufficient inventory
Order line	SKU	Node	Assigned quantity	Requested quantity	Available quantity	Allocated quantity
Line 1	Shoes	NY store	3	3	8	3
Line 2	Shoes	NY store	4	4	8	4

In processing this order, the Optimization service considers the following requested and available quantity:

Line 1: Requested quantity = 3
Line 2: Requested quantity = 4
Line 1 and Line 2: Available quantity = 8 (Shared across both lines)

As the available quantity matches the requested quantity, the Optimization service processes the order entirely for both order lines. This results in the following quantity allocated for each order line:

Line 1: Allocated quantity = 3
Line 2: Allocated quantity = 4

Scenario 2: Insufficient inventory to fulfill both order lines

In this example, the Optimization service processes two order lines for dresses that are available in a store in Chicago. There is enough inventory available to fulfill this request across each order line separately. However, there is a shortage of inventory to fulfill both order lines together.

Table 2. Fulfilling multiple order lines with insufficient inventory
Order line	SKU	Node	Assigned quantity	Requested quantity	Available quantity	Allocated quantity	Shortage
Line 1	Dress	Chicago store	3	3	5	3 - 1 = 2	2
Line 2	Dress	Chicago store	4	4	5	4 - 1 = 3	2

In processing this order, the Optimization service considers the following requested and available quantity for each order line:

Line 1: Requested quantity = 3
Line 2: Requested quantity = 4
Line 1 and Line 2: Available quantity = 5 (Shared across both lines)

However, when the entire order is processed, there is a shortage of inventory across the order lines. This results in the following quantity allocated for each order line:

Line 1: Allocated quantity = 3 - 1 = 2
Line 2: Allocated quantity = 4 - 1 = 3

Results: For both Line 1 and line 2 order lines for the store, 7 dresses are requested for processing by the Optimization service to fulfill the order. However, there is only a quantity of 5 dresses available. As a result, there is a shortage of 2 dresses to fulfill the order.

In this example, the allocated quantity is calculated by adding the assigned quantity amount across both order lines: (3 + 4) and reducing this by the shortfall amount of 2: (3 + 4) -2 to match the quantity that is available, which is 5. We assume that the shortage of 2 units is evenly distributed between both lines (1 unit per line). For each order line, the allocation reduction amount varies according to shipping costs, stockouts avoidance costs, or additional optimization parameters. As a result, a shortage can be applied to one order line, or distributed across multiple order lines.