Order processing and fulfilment: what is the key coordinating procedure that aligns customer orders with available inventory across warehouses and channels?

Introduction / Context:
In order processing, coordination is needed to assign stock to open orders based on priorities, availability, and service levels. This step sits between order entry and physical fulfilment and is central to promising accurate delivery dates (available-to-promise/ATP).

Given Data / Assumptions:

• Orders may be fulfilled from multiple locations.
• Inventory is finite and may be reserved or backordered.
• Coordination aims to match demand with supply fairly and efficiently.

Concept / Approach:
Product allocation is the coordinating procedure that assigns available stock (and expected receipts) to specific orders according to rules (priority customers, channels, regions) and constraints (lot, shelf life, transportation). Warehouse is a facility, and custom production planning is a make-to-order scheduling activity that may not apply in pure distribution scenarios.

Step-by-Step Solution:

Verification / Alternative check:
ERP order management modules include allocation/allocation runs (ATP/CTP) that perform this coordination before picking and shipping.

Why Other Options Are Wrong:

• Warehouse: A location, not a coordinating procedure.
• Custom production planning: Applicable to make-to-order manufacturing, not core to distribution order allocation.
• All/None: Incorrect given the precise coordinating step is allocation.

Common Pitfalls:
Skipping allocation and overselling; failing to consider reserved stock; ignoring priority rules leading to stockouts for key accounts.

Final Answer:
product allocation