Properly allocating production and service capacity to customers is
challenging when demand exceeds supply. Using several different planning
parameters, managers can help keep customers satisfied in difficult supply
Allocation and order promising are critical planning elements when managing
customers in supply chains, although they are often overlooked. This failure
often results in disastrous customer service outcomes.
Effective allocation and order promising ensures that a company can meet its
customer requirements in a given time frame. Organizations with mature
allocation processes can count on a higher level of customer satisfaction as
they develop a reputation for living up to their commitments.
In this course, you will investigate the essential elements of allocation and
order promising. You will also discover how organizations can improve their
capability in this important area of supply chain planning to maximize
customer service levels. Allocation and order promising help companies address
business issues such as providing accurate order commitments, giving priority
to the best customers, and maximizing the contribution of the most profitable
After completing this course, you should be able to:
Describe the fundamentals of the allocation process.
Create a plan for allocating scarce resources.
Establish a process for promising accurate customer orders in your organization.
Measure and monitor the indicators of a successful allocation process.