Overview
In Dynamic Replenishment, the dynamic replenishment algorithm chooses a target location for each task. Soft allocation changes what the algorithm treats as "already in the location" while it decides.
Off: the algorithm only sees the stock physically in each location.
On: it also counts stock that open replenishment tasks are already bringing to each location, and space reserved by active directed putaway sessions, as if they were already there.
An open replenishment task is any task with a target location whose status isn't Completed or Cancelled, whichever wave run created it. So the algorithm's conditions (empty location, same SKU, capacity and so on) are checked against a fuller, more current picture, and several tasks aren't sent to the same bin when it only has room for one.
When to use it
Turn soft allocation on when:
A wave often creates several tasks for the same product, and later tasks should "see" the locations earlier tasks already claimed.
Waves run while tasks from earlier runs are still open.
Your algorithm relies on content-based checks such as Suggest an empty location, Suggest a location that has the same SKU or Check Location Capacity.
You want Suggest Another Location to use the same picture.
Prerequisites
Dynamic Replenishment must already be set up: product replenishment levels, source and target locations, a Dynamic job type and a dynamic replenishment algorithm. See Setting Up Dynamic Replenishment.
Step-by-step
Navigate to Wave Rules and open the replenishment wave rule for your Dynamic job type, or create one.
On the General tab, below Rule Set Name and Warehouse, find Enable Soft Allocation for Dynamic Replenishment.
Check or clear it, then click Save.
Run the wave rule, or wait for its schedule, and check the target locations on the created tasks.
Default: checked for new wave rules; cleared for wave rules created before the setting existed. Each wave rule has its own value.
The tooltip reads: "Considers other pending replenishment tasks as if they were already placed when suggesting target locations, preventing multiple tasks from being sent to the same location. Note: this may increase task creation time, and in some cases the algorithm may fail to suggest a location if suitable ones are depleted faster than usual."
How it works
What counts as occupied
Counted | Soft allocation off | Soft allocation on |
Stock physically in the location | Yes | Yes |
Active putaway sessions reserving the location | No | Yes |
Open replenishment tasks targeting the location | No | Yes |
With soft allocation on, Suggest an empty location also skips locations that are the target of an open replenishment task.
Example (capacity): A-01 has a product capacity of Max 100 units. It holds 40 units, an open replenishment task is bringing 30, and an active putaway session has reserved 10. A new task needs 25 units and the rule uses Check Location Capacity.
On: occupied = 40 + 30 + 10 = 80, room = 20. A-01 takes 20 and the other 5 go to the next suitable location.
Off: occupied = 40, room = 60. A-01 is given all 25, so it ends up with 105 once the open task, the putaway and the new task are all complete.
How algorithm rule order shapes the outcome
Soft allocation changes what the algorithm sees, not what it looks for. The same picture can give very different results depending on which rule comes first.
Example 1: "Suggest an empty location" as rule 1
Task 1 (Lot A): no location holds the product yet, so empty Location 101 is suggested.
Task 2 (Lot B, same SKU, different expiry): 101 no longer counts as empty because Task 1 is bringing stock there. Location 102 is suggested.
Task 3 (Lot C): Location 103 is suggested.
The algorithm keeps finding the next empty location, so the same product spreads over several locations whenever lot, expiry, production date, receiving date or PO differs.
Example 2: "Suggest a location that has the same SKU" as rule 1, "Suggest an empty location" as rule 2
Task 1 (Lot A): no location holds the SKU yet, so rule 1 finds nothing and rule 2 suggests empty Location 201.
Task 2 (Lot B): rule 1 now finds 201, because Task 1 is bringing the SKU there. Location 201 is suggested again.
Task 3 (Lot C): Location 201 again, as long as it has room.
đĄ For efficient use of space, prefer Example 2: put a rule that matches existing inventory (same SKU, client or product group) before the empty-location rule. Searching only for empty locations can use up locations very quickly and spread identical products too thinly.
Suggest Another Location
When an operator asks for another target on a Dynamic task, the request uses the job's wave rule setting, so it sees the same picture as the original suggestion.
Volume-based actions
If the dynamic replenishment algorithm uses volume-based actions (Configure Volumetric Putaway), the checkbox decides whether reserved space is taken into account for volume too:
On: before a location is accepted, the volume claimed by open replenishment tasks and by active directed putaway reservations is subtracted from its free volume.
Off: soft allocation isn't applied, so these reservations aren't subtracted from the free volume.
See Volume Based Putaway.
What to expect when it's on
Suitable locations may run out sooner. Locations count as claimed as soon as a task targets them, not only once they're filled, so "no location found" can happen earlier. Tasks without a target are removed.
Task creation may take longer. Each suggestion is checked against more data, and each suggestion is saved immediately so parallel suggestions don't double-book.
A task that moves a whole LP may be split. With Only Replenish Full LPs off, the LP's quantity can be split across several target locations, depending on their product capacities and the claims already on them. With Only Replenish Full LPs on, the whole LP always goes to one location.
Suggest Another Location may offer fewer options, because some locations are already claimed.
Common questions
Does soft allocation change the Dynamic Replenishment Report or inventory screens? No. It's only used when choosing target locations. Reported quantities always reflect real inventory.
What happens when a task is completed? The stock is now physically in the location, so it's counted as real inventory instead of as an open task.
What if a task is cancelled? It no longer counts, so the location becomes available to later suggestions.
Does it count tasks from earlier wave runs? Yes. Any replenishment task with a target that isn't completed or cancelled counts, whichever run created it.
Does putaway see open replenishment tasks? No. Putaway only counts putaway sessions. See Understanding Soft Allocation in Putaway.
Does it work per warehouse? Yes. Each wave rule has its own setting, and a location only counts tasks that target it.