Reservation exists for order lines which have been rescheduled already

Summary:

Content (required):

We have a business scenario where the user updates the scheduled ship date of the sales order.

If the sales order line is already being picked and released, this update event should cancel the existing reservation for the order line.

However, it's not functioning as expected. The update event would not cancel the reservation. Due to this, millions worth of inventory is being reserved against orders which are not going to schedule in near future.

How do overcome this?

Expected behavior: Once the sales order line is rescheduled to a future date, it should remove the reservation against that order line until the criteria for the pick release rule are met.