Unable to create a new picking rule in R12

We are in the process of upgrading from 11.5.10 to 12.1.3. We have lot controlled items and in 11i we defined a LOT EXPIRATION picking rule so that items with the earliest expiration date get picked and shipped first. We want to define a LOT EXPIRATION Picking Rule in R12 with the FEFO Lot Criteria and it is not allowing us to create a new rule. Please refer to the attached screenshot. We are using the Inventory responsibility and this responsibility is attached to the INV_NAVIGATE menu. The "Define WMS Rules" is already included as a function on the INV_NAVIGATE menu. The attached document(Page 2) lists the submenus and functions that are included on the INV_NAVIGATE menu. Your assistance will be appreciated. Here is the version of the Picking Rule form: