When an order is placed, the system reserves inventory to fulfill that order. A reserved quantity of a specific product at a location or location group is called a reservation. When a reservation is assigned to a location group, you can implement business rules to transfer it to a specific location for fulfillment.
For example, when a shopper places an online order for several products the system creates reservations for the ordered products at the location group containing the online store’s fulfillment locations. Business rules calculate the most efficient set of locations in the group that can fulfill all the reservations from the order. The system then transfers the reservations to the individual locations and each location fulfills its reservations.