AX 2012 R3 Warehouse Reservation Hierarchy in New WMS Functionality

When goods are sold, inventory must be reserved to fill the orders. This reservation process will follow the rules of your reservation hierarchy. It must, at minimum, reserve inventory on 3 variables: Site, Warehouse, and Inventory Status. Site and Warehouse tells the user where the inventory is, and inventory status ensures that nothing which should be blocked from reservation (such as damaged goods) can be reserved. Other possible attributes that can be reserved against include License Plate, Batch Number, and Serial Number.

The location of the inventory being reserved is deliberately omitted from this list. This allows the person doing reservations to disregard where in the warehouse an item is and allow the warehouse team to determine from where inventory should be pulled during picking. This also allows the warehouse team to complete inventory moves and replenishment without being thwarted by inventory reservations that keep them from completing work against inventory in a specific location.

The way this works is that in your reservation hierarchy the system will reserve items in the order you have specified until it reaches the Location attribute. All attributes above Location will be marked for reservation, and all attributes below and including Location will not. In the example below, your sales team is prevented from selling more inventory than you have in your warehouse (or ordered, depending on your use of inventory statuses and blocking), and not allow them to dictate from what Location, License plate, or Batch number is chosen for picking.