What is product allocation in SAP SCM-APO-ATP - Global Available-to-Promise?

SAP Term: product allocation

• Component: SCM-APO-ATP

• Component Name: Global Available-to-Promise

• Description: Specific quantity of a product that you define for the period-dependent allocation of this product for specific characteristics combinations such as product and customer group. By defining product allocations, you can avoid a situation where - when products are scarce - the first customer is allocated the entire available quantity and subsequent sales orders are then not confirmed or are confirmed far too late.

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• Key Concepts: 
  Product allocation is a process used in SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) module to determine the availability of a product for a customer. It is part of the Global Available-to-Promise (ATP) component, which helps to ensure that customers receive the products they need in a timely manner. 
  
  How to use it: 
  Product allocation is used to determine the availability of a product for a customer. It takes into account the current stock levels, any existing orders, and any planned orders. The ATP component then calculates the available quantity of the product for the customer and provides an estimate of when it can be delivered. 
  
  Tips & Tricks: 
  When using product allocation, it is important to ensure that all relevant data is taken into account. This includes stock levels, existing orders, and planned orders. Additionally, it is important to keep track of any changes in demand or supply that could affect the availability of the product. 
  
  Related Information: 
  Product allocation is part of SAP's SCM-APO-ATP Global Available-to-Promise component. Other components of this module include demand planning, supply network planning, and inventory optimization. Additionally, product allocation can be used in conjunction with other SAP modules such as Sales and Distribution (SD) and Materials Management (MM).