If there are multiple warehouses, then it may be possible for a customer order to be fulfilled by more than one warehouse when the order arrives. In that case, the fulfillment policy determines which warehouse fulfills the order. There are two possible policies: soonest and nearest.
For example, assume an order has just arrived from a customer in Calopeia, and there is an empty warehouse in Calopeia and a full warehouse in Fardo. However, there is inventory en route to Calopeia that will arrive in time to meet the order's lead time requirement. If the fulfillment policy is soonest then the order will be fulfilled from the inventory in the Fardo warehouse because demand could be fulfilled sooner from Fardo than from Calopeia. On the other hand, if the fulfillment policy is nearest then the order would be fulfilled from the Calopeia because it is closer to the customer even though the customer will have to wait longer.
If there is more than one warehouse, the fulfillment policy can be set by clicking on the headquarters icon, changing the parameter in the resulting form, and clicking the change policy button.