Allocation
From wikiMHEDA
An allocation in inventory management refers to actual demand created by sales orders or work orders against a specific item. The terminology and the actual processing that controls allocations will vary from one software system to another.
Allocations are typically categorized as either standard allocations or firm allocations. A standard allocation, also referred to as a normal allocation, is an aggregate quantity of demand against a specific item in a specific facility. A firm allocation is an allocation against specific units within a facility. Firm allocations are also referred to as specific allocations, frozen allocations, holds, or reserved inventory. Standard allocations simply show that there is demand. Firm allocations hold inventory for a specific order.[1]
