After some debugging, we determined that this is issue is the result of DIXF not integrating any one or all the these four tables:
WHSINVENTTABLE
WHSRESERVATIONHIERARCHYITEM
TMSINVENTENABLED
WHSINVENTENABLED
I item data is not included in one or all of these tables, shipments will not be created at release to warehouse.
We loaded these tables with Atlas. The Excel Addin would most likely work as well. Or a developer could create an X++ job to laod the data.
Tim