A computer implemented method, a tangible computer usable medium, and a data processing system allocate materials to an automated purchase assembly conversion process to support a dynamic configure-to-order production operation. A configure-to-order backlog order is analyzed to determine demand for a particular purchase assembly. If the demand for the particular purchase assembly can be filled with an on-hand purchase assembly in inventory, the on-hand purchase assembly in inventory is allocated to fill the demand. If the demand for the particular purchase assembly can not be filled with an on-hand purchase assembly in inventory, a determination is made as to whether the demand for the particular purchase assembly can be filled by reallocating other similar on-hand purchase assembly in inventory and on-hand individual parts. If the demand for the particular purchase assembly can be filled by reallocating other on-hand purchase assembly in inventory and on-hand individual parts, the on-hand purchase assembly in inventory and the on-hand individual parts are reallocated to fill the demand.
