Allocation Rule

Understanding Allocation Rule

What is an Allocation Rule?

An Allocation Rule in Canary7 is a configurable set of conditions that determines how inventor is allocated to shipments. Allocation occurs before Shipment Picking Job Creation and is part of the Waveflow process.

Each Allocation Rule can include multiple rule details and subsequent strategies, allow for fine-tuned control over inventory allocation, based on location, expiry date, quantity, and more.

Allocation Rules let you define exactly which inventory can be allocated and how it should be prioritised. This allows you to:

• Prioritise specific locations (e.g., Pickface before Bulk).

• Enforce FIFO/FEFO to reduce waste or manage shelf life of perishable products.

• Control whether stock can be split across locations.

Common Use Cases

Example 1: FIFO / FEFO Allocation

For industries like food or pharmaceuticals, stock rotation is critical. You can configure an Allocation Rule to use:

• FIFO (First In First Out) - Prioritise the oldest received inventory.
• FEFO (First Expiry First Out) - Prioritise inventory closest to expiry

This helps avoid spoilage, and ensures compliance with regulatory or quality standards.

Example 2: Only Allocate from Pick Locations

Many warehouses want to ensure that inventory is only allocated from designated Pickface areas. This can:

• Trigger replenishment jobs when permanent pick locations fall below their designated minimum threshold.
• Keep pickface locations stocked for faster fulfilment.

This is achieved through Location Selections that will filter Pick locations from Bulk.

Example 3: Allow Split vs Don't Allow Split

The Allow Split field controls whether inventory can be split across multiple locations. When it is enabled, Canary7 will source required from quantities from multiple locations if one location does not have enough stock. This maximises inventory usage and reduces the risk of shipments being rejected due to insufficient inventory.                                                      

Allow Split Enabled

Canary7 will source the required quantity from multiple locations if a single location does not have enough stock.

Benefits:

• More efficient use of inventory across multiple locations
• Reduces the chance of rejection due to insufficient stock
• Helps clear smaller, overlooked stock quantities                                           

Allow Split Disabled

Canary7 will only allocate picks to a location that has the full required quantity.

Benefits:

• Pickers only visit one location, reducing travel time and increasing picking efficiency
• Simplifies workflows, ideal for bulk picking or large-item operations

Accessing Allocation Rule

• In the Navigation Menu, search for “Allocation Rule” and select it.

• Alternatively, go to Configuration > Shipment Profile Setup > Allocation Rule.

Add Allocation Rule

• Click on Add to create a new Allocation Rule.

• Enter a name for the rule and ensure the Active checkbox is selected to make the rule available in Canary7.

• Click Submit to save the rule.

Adding Allocation Rule Detail

• Once the rule is created, locate it in the Allocation Rule List and click the ellipsis menu to edit.

• Click Add to define the details of the rule.

• Select the following options:

  • Allocation Strategy: Choose from options like Any Location, Permanent Location, FIFO, LIFO, etc.

  • Location Selection: Optionally filter allocations based on location selection.

  • Enable Allow Split if necessary for your allocation strategy.

• Ensure that Active is checked, then click Submit.