Soft Reservation and Hard Reservation in Oracle Sales Order

By definition "Soft Reservation"

• Sales order demand is a soft reservation.
• When you are entering sales order go to tools and check the "reserve" that is soft reservation.

• In Planning parameter form not enabled the check box Net reservation, the planning process considers all Sales Order demand as soft reservation.

  
"Hard Reservation"

• Hard reservation is sales order demand that you *firm * by reserving selected inventory for the purposes of material planning.

• Available to promise (ATP) calculations and customer service issues. 

• In the planning parameter form whenever you enable the check box  Net reservations, the planning process satisfy hard reservation demand before soft reservations.

• Further we have to set Pegging Method under MPS/MRP planning tab.

• If the order is pick released for the customer that is hard release.

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