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What is the order (Rule) that the "Automatic reservation" select parts to reserve in the inventory in a customer order?
According to the standard functionality, the automatic reservation will happen in the following order.

1. Earliest Expiration Date
  • The Part is reserved at the Location where the Part has the earliest Expiration Date.
2.Earliest Receipt Date
  • When the Part is not using an Expiration Date: the Part is reserved at the Location where the earliest Receipts of the Part has been performed.
3.Putaway zone ranking
  • The Part is reserved on the Location having the highest Putaway Zone Ranking.
4.Largest Quantity on Handling Unit
  • System will try to reserve the HU with the largest quantity

From APP10, there is additional flexibility that you can actually set your own order in Site Level.