Shipping tolerance for item with indivisible lots not working

Scenario: An item has following indivisible Lots on hand:

Lot     qty (Kgs)

01          35

02          28    

03          40  

Total   103 Kgs

A customer places an order for 100 Kgs.

We have defined over/under shipment tolerance at 50% which means we should be able to allocate and transact upto 150 Kgs for this order.

When this order is pick released the system creates a Move order with Requested Quantity = 85 Kgs. (40 Kgs and 35 Kgs)

Additionally a backorder line of 15 Kgs is also generated.

In Move order we are unable to allocate and transact the three lots (103 Kgs) and get the following error:

"Transacting this quantity would exceed the shipping tolerances for this sale order line.