E1:42: Re-Committing Future Orders
(Doc ID 2567416.1)
Last updated on MARCH 14, 2022
Applies to:JD Edwards EnterpriseOne Sales Order Management - Version 9.2 and later
Information in this document applies to any platform.
Client wants to understand how Future Commitments work in E1.
In JDE World, the client has implemented a ‘Inventory Re-allocation’ feature that runs a few seconds after mid-night. This feature addresses a shortcoming in JDE World which is illustrated by an example below.
We have built of 500 EA in inventory in the morning of 7/11/2019 for Item A at Branch 200 based on forecasts to meet quick ship demands for the summer; with 200 EA
already on orders in the backlog. Later in the afternoon of 7/11, we get EDI purchase orders from ABC Supply for 80 EA of item A with requested dates of 8/15, 9/15, 10/15,
11/15. JDE will allocate 300 EA available for item A as follows: 80 to SO123 on 8/15, 80 to SO124 on 9/15, 80 to SO125 on 10/15, would allocate remaining 60 to SO126 on
11/15 and backorder 20 on the order SO126 on 11/15. Since all inventory is spoken for, an order SO135 entered for 10EA on 7/12, requested for 7/19 will be back ordered.
The ‘Re-allocation’ feature simply zeroes out all soft allocations (a rather simple enhancement) and backorders all customer orders at midnight and runs the standard
JDE inventory allocation program which allocated by ship date and runs standard report programs from Oracle. So in above example, SO135 for 10 EA entered later, will be first
allocated 10 EA, then the remaining will be allocated to ABC Supply orders. If more orders due in 7 days come in week of 7/15, they will get allocated after re-allocation.
This feature ensures high service levels for our inventory by re-prioritizing all orders as new orders come in and orders are a mix of long lead time and short lead time.
In E1, we need to evaluate if the similar functionality can be achieved by standard software.
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