Explanation:
To configure the reservations for production, you should do the following:
* Define configuration for paint reservation: You should configure the Item model group for paint. The Item model group determines the inventory policies for an item, such as reservation, tracking, and costing1. You can set the reservation policy for paint to FIFO date-controlled, which means that the inventory reservation is controlled by a sorting date according to the FIFO principle2. You can also set the Backward from ship date option, which means that the inventory reservation is controlled by the last update physical date according to the FIFO rule2.
* Define the reservation principle for paint: You should set the reservation principle to Start. This means that inventory is reserved when production starts3. This way, you can ensure that paint is available at the production station when needed