Reserve or Allocate at Order?

With reservations or allocation. I understand that allocation is at a lower level and we will definitely use it for a lot tracking products. However, does the system view them deferentially when planning? For example, is one a soft reservation that the system can override if it thinks it can fill the demand before it is needed. Does it treat either has a hard reservation that it ignores and treats as unchangable?

We want to hard allocate all our orders and jobs as soon as they are created. Can someone let me know if this is not advisable and what possible drawbacks may happen.

Thanks
Matt

The only issue we’ve seen is as orders are entered, if you allocate, some back orders may get skipped.

Whereas you have one person (e.g. inventory control) doing all of the allocations your process can ensure they don’t miss backorders as well as allocate to the new orders.

Allocation goes down to the BIN level, and will not let you “borrow” from the qty if it is allocated. (look at PartBIN and see the Qty Allocated value).
Reservations are only to the warehouse level, and still allow you to move inventory from bin to bin without problem, as long as you don’t use more than the total in the warehouse.