At broad level soft and hard pegging define the way your supplies will be pegged

to the demands
Hard pegging is used in always used project manufacturing environments such as d
efense contractors
since materials are procured and must be strictly allocated to specific projects
.
Soft pegging is generally the standard for commercial practices where inventory
is considered "common"
and can be re-allocated to any customer based on schedule date and current busin
ess priorities.
In some cases, commercial practices still require the ability to allocate supply
across their supply chain
to a specific customer. In these cases, a combination of both methods is used. O
racle provides a feature called
'seiban' that uses hardpegging and the project attribute to allocate supplies to
a specific sales order or forecast
across the supply chain. Since the pegging feature is controlled by an item att
ribute, this can be deployed for
selected items.
Organization item>>>MPS/MRP Planning tab there is a pull down for pegging
Also while planning please use reservation level and hard pegging level in the m
ain tab of Plan options to select
the levels while doing hard pegging.