Which Warehouse will GOP pick in case there is no on hand in all 3 warehouse as part of sourcing

Summary:

GOP is picking up Rank 1 warehouse when there is no on hand in all 3 sourcing rule warhouses.

Content (required):

we have created an order 10028. Sourcing rule per item category is Rank 1 – STN Org , Rank 2- EXP Org , Rank 3 – DUL Org

Item is not assigned to DUL org. None of the warehouse have on hand ( they have 0 on hand) 

When GOP picked up order for scheduling it populated Rank 1 Warehouse STN was the fulfillment warehouse. Is this correct 

behaviour....? Shouldn't it have gone to lower ranks orgs..

Version (include the version you are using, if applicable):

23A (11.13.23.01.0)

Code Snippet (add any code snippets that support your topic, if applicable):