Routing rules and overselling the inventory

I have a dev store where i have set 2 routing rules.

  1. Minimize split fulfillments
  2. Use ranked locations

I have below locations with inventory:
AL = 2 qty
CA = 2 qty
NY = 2 qty
NC = 0 qty
I have placed an order from FLORIDA, with 5 qty. I checked it, then i found in the order section that the location is showing AL (qty=5)
Which is not good if you have qty=2, then take from AL 2, CA=2, and NY=1. If there is no quantity in NC.
If there is a qty in NC it should take NC as the second option.
However, the system is now selling quantities more than it has, which is over-selling, resulting in a minus. But other locations have the inventory available.

Please let me know what setting i have to do.

Quick question: are all your locations set to fulfill online orders? And could you share a link to the dev store or a screenshot of your current fulfillment priority setup?

Ans: Yes all of my location are set to fulfill online order.
Please see the attached pdf for ranking.