Manual Pegging

Definition
Manual pegging is the process of manually linking an existing supply to an existing demand. Once this connection is established, the pegged supply is automatically allocated to the linked demand as soon as the supply is received into inventory. At that point, the pegging is replaced by a corresponding reservation.

Purpose
Manual pegging is typically used to override normal system allocation behavior and enforce a strict one-to-one (or many-to-many) connection between supply and demand. Unlike normal supplies, which remain free and available for allocation by any demand, pegged supplies are reserved exclusively for the designated demand.

Pegging can be viewed as a pre-reservation of an incoming supply and is performed before the system creates a standard reservation. It is especially valuable in shortage situations, where it helps ensure that critical demands are met. For example, in the MRO industry, pegging is crucial to match the most suitable supply with specific shop order material lines.

Use Cases
Manual pegging allows users to:

• Address supply shortages by creating and linking new supplies to demands.

• Ensure that certain supplies are available only for specified demands.

• Manage complex allocation scenarios such as splitting or combining supply and demand quantities.

Pegging Scenarios

• Customer order lines (demand) can be pegged to:

  • Purchase order lines (supply, if purchased)

  • Shop orders (supply, if manufactured)

• Material requirements for shop orders (demand) can be pegged to:

  • Purchase order lines (purchased supply)

  • Shop orders (manufactured supply)

Quantity Relationships

• One demand line may be pegged to one or multiple supply lines.

• Multiple demand lines may be pegged to a single supply line.

• Example scenarios:

  • A demand line for 100 pieces pegged to two supply lines of 50 pieces each.

  • Two demand lines of 25 pieces each pegged to a single supply line of 50 pieces.

  • A demand line for 10 pieces pegged to a supply line of 25 pieces (only 10 pieces pegged; the remaining 15 remain free).

Rules and Restrictions

• Automatic and manual pegging cannot exist simultaneously for the same supply or demand.

• Only supplies and demands with the supply code set to Inventory Order are eligible for manual pegging.

• Demands with supply codes such as Project Inventory, Project, or Non-inventory cannot be manually pegged (though automatic reservations are possible for project inventory).

• Scrap factors defined on inventory parts are not considered during pegging.

• Once pegging is created, it can be modified. However, when a supply (purchase order or shop order) is received, the pegging is automatically converted into a reservation.