Solution ID: 201040447

Doc ID: 654390.1

Date Last Revised: 11/04/2010

Title: Warehouse Management Overview

Abstract: This paper describes the how to setup EnterpriseOne to use many of processing that are used in the warehousing module. It describes the setup, shows examples and gives information on how the functionality works.

Table of Contents
General Warehousing Set Up Branch Plant Creation Locations Set Up Item Set Up Putaway Putaway Set Up Basic Putaway Putaway Overrides Random Putaway Picking Picking Set Up Basic Picking FIFO Phase Picking Replenishment Replenishment Set Up Basic Replenishment Auto Replenishment UDC List

General Warehousing Set Up

Before starting the warehousing process, it is important to understand how the warehouse in question will be managed. For instance, for each Branch Plant created, which can represent an entire warehouse or part of one, a unique receiving location and a unique shipping location can be defined. With warehousing from the moment the items enter the warehouse until they are shipped out, they are tracked by the Location Detail Information (F4602) record.

Branch Plant Set Up

Go to menu G4641 Warehouse System Setup

Create the business unit, in Revise Single Business Unit (P0006), called BPWH. This will be Branch Plant Warehouse for examples in this paper.

Create the Address Book information (ie:1919). Note: The F in the search type designates the address as a facility.

In Branch Plant Constants (P41001) add the warehouse BPWH. Check the Warehouse control box and the Location control box. Those flags should be ON.

Once the branch is created add the locations to this branch plant. The follow default locations will be created for examples in this paper: R.. Receiving dock once you receive a Purchase Order (P4312), the items will enter the warehouse via that dock. From there, the Putaway process will start. D.. Shipping dock once you create a sales order from the warehouse, the order goes on hold **, and the Pick process will move the items from the warehouse to the shipping dock.

 O.. Overflow location. V.. Variance Location. H.. Holding location. The format of the locations needs to be defined by going into the Branch Plant Constants (P41001) by taking the Location Definition row exit:

The first tab contains information that determines the breakdown for the naming convention. The locations mentioned above have two periods after the letter because we are going to define the locations by Aisle, Bin and an extra code. The separator character is a period, so the names 1.a.1. The values are alphanumeric, so each field can have 36 values. With the convention, up to 46656 locations can be created. If a length of 2 or more is used values in the name could be aligned to the right or the left. Do not change the values in the constants once locations have been created and some processes have taken place. Changes will cause the information in the Location Detail Information (F4602) records to be incorrect. On the last tab, Warehouse Control, R.. and D.. are defined as the receiving and shipping locations.

Select the Request Inclusion Version from the UDC 40/RV. Also define the units of measure for length, volume and weight. Make sure to check the Standard Unit of Measure Conversion (P41003) to add a unit of measure conversion between linear and volume. Even though there is no such thing as a real conversion between an inch and cubic feet, this has to be set for calculation purposes.

Location Set Up
Location Creation Note: Warehousing will not work with inventory in the primary location. The advanced warehousing setup must include a Blank primary location with no stock.

Add locations mentioned before, and locations for the actual Putaway, Replenishment and Picking. At this point, since the warehouse processes have not been defined the put zone, pick zone and replenishment zone are not covered at this point.

Many locations can be added at one time using the Speed Location Maintenance program (P4100A). Note: For more details on this program please review Note ID 625510.1 (E1: 41: Speed Location Maintenance P4100A).

All the locations can be created at one time, with their putaway, pick and replenishment sequence. When processing from multiple locations, the system needs to use the tie breaker rule, sequence could be used as the tie breaker. But this is not used automatically for anything else. Location Profile From menu G4631 (Advanced and Technical Ops) go to Location Profile (P46020).

Select a location:

Staging Location: if a location is designated as a staging location for picking or shipping, this will turn the location into one that has unlimited dimensions. It will allow the R.. location to receive everything, regardless of the dimension, volume and weight of the items. If the R.. or D.. location are not made into a staging location, good may not be able to be received or sent. Mix Container: designates if mixing different containers in a location is allowed or not. The allowed containers are defined in the Allowed Containers by Location (P46026) if you select not to mix. Mix Dates: designates if mixing different lot expiration dates is allowed or not. Allow Putaway: designates if putaways TO this location are allowed or not. Allow Pick: designates if putaways FROM this location are allowed or not. Allow Replenish: designates if replenishment FROM this location are allowed or not.

Level of Detail: UDC H40/LL this is for review and reporting purposes (ie: a report on all the level 9 locations can be created). Maximum Items: designates how many different items can be stored in one location (from 1 to 99). If left blank, there is no limit. Tax Code: UDC 46/LT - a code that indicates that the location has some taxes applied. If an item has a tax applied in the Item Profile (P46010), it can only go to a location with that specific tax. Minimum Put %: The minimum percentage of the location capacity to be refilled once it has been emptied. For example, if the location has 20%, only putaway to this location if a minimum amount of 20% of its capacity can be filled. Minimum Pick %: the system first calculates how many of an item would fit in the location, and then how many would be the minimum %. It will only pick this amount. However, this has to be allowed in the Picking Instructions (P46095). There is a field in the instructions called Min % that has to be Y. Container Code: used in correlation with the Container and Carton Codes (P46091), UDC 46/EQ. Dimension Group: UDC 46/LD - a code that identifies locations that share the same dimensions. After setting up a location dimension group, all the locations in it will have the same dimensions. Dimensions cannot be assigned to a location; instead a location can be part of a dimension group. Once a group is created, assign it to locations via the

Location Profile (P46020). Note: All non-staging locations need to be in a dimension group. Characteristics Group: UDC 46/LC a code that can be assigned via Location Characteristics (P46021) and works similarly to Dimension Group. Characteristic are only used with random processes. With fixed putaway, for example, the system is told exactly where to put things. With random, the characteristics drive the process (for example, frozen products will go to the refrigerated locations, characterized as FROZEN).

Locations tab:

Putaway Zone/Staging: the first column, from UDC 46/ZN, defines the area where the goods are put away if using putaway by zone. If the field is left blank, the location does not belong to any zone. The zones allow users to segment the warehouse. The second column indicates the staging location for the operation where items are temporarily held. It is used for operations in 2-phase mode. Pick from the first location to the staging location, and then from the staging location to the final location. Replenishment zone: fixed replenishment is always by zone, therefore, if it is used the field should be set to an existing value. Location Dimensions (P46022) This could be called location dimension group dimensions, since the physical dimensions are now being assigned for the locations in this specific dimension group.

The Locations Dimensions (P46022) is used to define the dimensions of a location dimension group. The usable dimensions are the ones taken into account for calculations. Regardless of the capacity method, those dimensions need to be set up. Unless a location is set as a staging location, it has to have a dimension group, and the group needs to have valid dimensions. Location Characteristics Location Characteristics can be set by specific location, or by group used to describe specific attributes of a location or characteristic group. For example, COLD could be the characteristic group of refrigerated locations. This is used for random processes.

Note: A location can have multiple characteristics (DRY and COLD, or WET and COLD). Make sure the overflow, variance, primary, etc are staging locations and that the locations are in the right dimension group.

Item Setup
Item Creation An item for warehousing is the same as any other item except that the item branch record has a value in the Warehouse Process fields of the Category Codes. The value set in the Item (F4101) record is only used as a default value.

After OK, The Category Codes screen is displayed:

Examples used in this portion of the paper will use CII as process 1. Process 2 and 3 are blank. In the instructions for the operations it will be setup by the combination CII /Blank/Blank. Blank/CII/Blank would be a valid value too. A warehouse process group is a set of values that determine the set of instructions this particular item or group of items will use for each different movement. The item dimension group (UDC 41/01) allows companies to simplify the set up by grouping items of identical dimensions into one group. In other words, every item in the group will have the same dimensions, volume, and weight.

Item Branch Plant record:

The values in those fields are defaulted from the Item Master (F4101) values. The system will use the value from the item branch (F4102) record.

Order groups will be the forth value along with the three warehouse process groups, to point items to specific instructions. In this way, a particular Order Type or Document Type could be processed in the warehouse in a different manner. The purpose of unit of measure group is to group some units of measure. If there are comparable units of measure, such as thick cartons and light cartons, this provides a way to set only one set of instruction instead of two. Note: This needs to be set up BEFORE the item is on hand in the system because once there is a record in the F4602, the field for UOM group will be blank in that table. Inclusion Rules (P34004): Select the warehouse process group (WMS) this value (WMS) comes from the BP constants - and enter the Order Type and Line Type in the QBE line. Click find, to display all of the existing statuses for that combination. By clicking on one line, it will turn light blue, meaning the status is now part of the inclusion rule. This status is therefore now included in the warehousing process. As long as this order is in one of those statuses, it is considered in the warehouse.

Capacity Definition by group/item (P46024):

This is only used for a capacity method by quantity. Users can also have groups by item.

This means that if a location is in the group B, in Branch/Plant DG, only 10000 items DG12 can be put in it. This goes by percentage. For example, a combination of 1000 DG7 and 2500 DG12 can also be put in, or, 5000 DG12 which would leave room for only 1250 DG7. Differences in Capacity Definition by group/item: The capacity by item defines the max quantity of a specific item in a location dimension group. The capacity by item group defines the max quantity of any item in this group (item branch record). Speed Group Maintenance (P4690): This program allows users to easily visualize and mass maintenance the category codes of your items. This is good for troubleshooting. Item Profile With warehousing, a profile needs to be created for the item that includes pertinent information for the process. Click on add to put the information for item IT1 in BPWH:

Overflow Location: If an item cannot fit in a location, then the over quantity will go to this location. It can then be managed from there using for example the manual replenishment program, which allows the transfer of items from one location to another while preserving the Location Detail Information (F4602) records. Variance Location: If a smaller putaway/larger picking quantity is confirmed than planned, the remaining quantity will go to this location. Holding Location: If confirming more than was had suggested to a pick, the extra quantity goes to the holding location. Note: For more information on this, please review E1: 46: Overpicking In Warehouse Management (Doc ID 625587.1). Base Putaway Location: Used by the system if proximity is used as a tiebreaker for putaway. The system calculates the distances from this specific location and ranks them accordingly. It uses the latitude and longitude and height coordinates. Base Picking Location: Same as Base Putaway Location, for used for picking.

This is where the type of putaway/pick/replenishment is defined. Those values come from UDC H46/PT for putaway, H46/PK for picking and H46/RP for replenishment: I: one-phase putaway. L: 2-phase logical putaway: this generates only one document, From/To locations. P: 2-phase physical putaway: this generates one document for From location to Staging location, and another for Staging to Final location. Mix items: Designates if mix items in the location are allowed or not. Mix lots: Designates if different lots with different dates are allowed or not. If unchecked, different receipt dates may be seen in the Location Detail Information (F4602). Split lines: Designates if spliting a line from an order into multiple putaway requests to multiple locations is allowed or not. If unchecked, the program will not split the line for detail sequences.

Units of Measure UOM Definitions P46011

Capacity Method: H46/DM Capacity method: 1: Volume checking: The system will look at the item dimensions to calculate availability in the locations. This will work for items in fluid form (sand, liquids, grains, chemicals ) 2: Layering: The system compares the usable dimensions and will consider rotations if they are allowed. This will work for item with defined shapes. 3: Quantity Checking: Decides ahead of time how many units will fit. UM usage:

1: Pallet: The system calculates as an open container, therefore taking for any dimension the greatest of the sum of the items or the container itself 2: Box: Is a closed recipient. Whatever information is in the Container and Carton Codes (P46091) is retrieved. Tag method: N: Do not print tags T: Print one tag for the entire movement 1: Print one tag for each item in this UOM for the movement License Plate: Whether or not an item is LPN (for storage unit number, can only be turned on for the largest UOM). Breakdown: Can this item be broken down into smaller units or not. Rollup: Can items be added together to go to the higher UOM or not. Dimensions (P46011):

If an item is small, and the volume is less than 1/100, the volume will be set at zero and errors, such as divided by zero, will be displayed. It is important to decide ahead of time of the units of measures to be used. If some items are very small, it is better to use metric measurements like millimeters.

UOM conversions At the item Branch Plant level, make sure a conversion exists between the multiple UoMs, and a hierarchy. The largest UoM should be at 1, then the next at 2 and so on. If this is not set up, errors will occur.

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Putaway
Putaway Set Up
Go to menu G46311 (Warehousing Movement Rules) for all the warehouse movements set up.

First go to Putaway Selection (P46093) and add the CII Process group for BPWH, for the item IT1.

Now, any item in BPWH, with a warehouse process combo of CII/blank/blank/blank order group, will go to the tables PUT, PICK and REPL for the process instructions. Process Modes: Another attribute on the table that allows flexibility. The program fields are for custom programs, or third party software. Next, go to the Instructions form exit:

Display Sequence: The order in which the process will take place. If multiple UoMs (ie: Pl> Ca>Ea) are used, it might be better to put the largest UoM first, this way the system will try to first move a pallet if possible. For example, 1200 EA are on one pallet and and order for 1200 EA is entered, if EA are first in the sequence, the system will print a move tag for 1200 units and might force the warehouse employee to count 1200 units from two pallets instead of moving one full pallet. UM: UoM in question. UM GP: UoM group if used. From Quantity: Minimum quantity before the system considers the movement. If you dont want to move a full pallet, then there will be no move. Method Code: F: fixed location, valid for all movements. R: random locations, valid for all movements. E: go to empty locations, only for putaway. X: Go to locations already containing the item, only for putaway.

Random Rule: Is needed if the method is different from fixed. Putaway Zone: If used only locations within this putaway zone in the loc profile will be considered. Put TB: Tie breaker values, can be sequence (1), location with the least stock etc. Min Putaway: Will use or not the Min % for the location if this is set up for the location.

Max Put: When used with Maximum Putaway Quantity by Zone (P46025), will suggest the zone with the maximum capacity for this item in this UoM. BD: Breakdown. If Breakdown is not allowed, cannot Allow Partials (AP). Top Off: Used to fill in the locations. AP: Allows partial UoM. Fixed Putaway Locations: Is used when, for the instructions, fixed replenishment is set for the table that is on the warehouse process on the item branch, also unit of measure specific.

The item IT1 is set for the locations 1A1, 1B1 and 1C1.

Basic Putaway
At this point, the item IT1 is set with the process CII. The locations are part of the dimension group ARGENT. The process is fixed putaway, table PUT, only for EA. The putaway process is now to receive the purchase orders into the warehouse. The inclusion rules are set up so that when we the status of received is reached, the warehousing process is entered. As set up at the BP level, the receiving location is R... This is where the goods will go. This location is a staging location, with unlimited dimensions. From there, the item will be put away to the locations 1.A.1 through 1.C.1.. Go to G4611 Inbound Warehousing Operations:

Enter a PO for this item:

Receive the PO:

The request is created, which means the item is now in the warehouse, and should only be handled via warehousing management programs. The request is in status 200 (Request Created).

Run the Location Selection Driver (R46171) UBE:

Check the location utilization P46220:

Putaway with multiple UOM and Override

Simple Override Create a new item IT2. We are going to use multiple UoM. The item will also go through the warehouse process CII:

Set up the UOM hierarchy for the item:

Set up the item profile for all the UOM:

Set item IT2 to locations 2.A.1 and 2.B.1 for all 3 units of measure:

Enter an order for 2500 units:

Receive the order, as is, no override:

A request is generated:

Check the Location Detail Information (F4602) table:

Process the request:

Again check the Location Detail Information (F4602) table:

Now create the very same order, but at receipt, do an override:

To do the override, blank out the values for PL and CA. Remove the 21 PL, the 209 CA and just enter 2500 EA:

Compare the first two lines see the change in the unit of measure:

No override with capacity method of 3 Create the item IT3, on the same process CII. Change the capacity checking to a 3, and add a maximum capacity of 1PL for the item IT3 in location 2.C.1..

The item IT3 has a conversion form 1 PL = 100 EA. Place an order for 1 unit:

Receive (no override) and check the request:

Process the request:

Note that 1 PL has moved, since this was the first UOM on the hierarchy, did not override.

Create another order for 1 unit, process the request, and go to the overflow location:

This is because we the system is trying again to move a pallet, not a unit, and so it is over capacity, so it goes to the overflow location.

Random Putaway
Random putaway is actually contrary to random. It is a logical method of putaway (applies similarly to picking and replenishment). According to an item warehouse process, it will be moved to the location with the right characteristic. For example bring the dairy products into a COLD zone. To create a random rule in random instructions and then a random rule with the characteristic, in 46/LC, add the characteristic COLD.

Create the item IT6, with the process warehouse PERISH:

Define also the capacity by item, the item profile and the item UOM:

Create a random rule in 46/SR RANCOL for cold random putaway. Set up the putaway selection with this new table. If PUT was retained, it would have behaved like the CII process.

Go to Putaway Random Requirements:

Sequence: Sequence in which the conditions are checked.

Relationship: equal or not. RO: required or optional. In this case, the characteristic has to be equal to COLD. Add the characteristic to the location R.3.1 and R.3.2.

Run the Build Random Location Table (R46821) to build the random table. If successful, a blank PDF is displayed. Check the Random Locations (P46821) and see that the two locations are there:

Run the Build Tiebreaker Files (R46027) UBE:

The system left aside all the locations but R.3.1 and R.3.2. Enter a PO for 100 IT6:

Receive the Purchase Order and check the requests:

Process the request:

The item has been moved to the cold location R.3.1.. Putaway Reservations: Once a Purchase Order is processed and a request is generated, go to the putaway reservations and change the location. This is an override of sorts, and it allows users to make a change on the fly.
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Picking
Picking Set Up
Next example is to set a very simple fixed location picking with the process HAZMAT. The item IT4 is mostly set up for this. It is important to have the greater UOM in first place on the sequence, so the picking staff does not have to count 1000 units out of a palette.

Three new pick locations, P.1.1 through P.1.3 are needed.

Note: In the picking instructions, N is set for Max Pick, therefore it will not consider the Max Pick quantity in this process. An Item Location (F41021) record must be created for the picking locations:

Basic Picking

Picking from an out of stock location Place an order for IT4:

The order goes on ** hold. This status is indicated by a BSFN. It is not stored anywhere. There is no inventory at this point:

Get the picking request:

Process the request, setting up the processing option for replenishment of the Location Selection Driver (R46171) UBE:

It processes, but since there is no stock in any of the P locations, it gives the error **3448 when looking at the request in Warehouse Movement Confirmations (P4617):

If auto replenishment is turned on and some stock exists in the replenishment zone, the order would have gone through, with instructions to replenish the empty location (see Auto Replenishment for more information). Picking with Stock Now, add some stock in location P.1.2, so the picking can take place. Add 10 EA of IT4 in P.1.2.. Enter an order:

Process the request and get the move tag we expected:

Now, for a new sales order, create it for more than what is available:

Process the move slip for what is available:

Confirm the picks for the quantity available:

Ship Confirm the order and it is out of the warehouse. Note: As there is a partial confirmation, the request will get at status 250 Request in confirmation. The status 250 means that not all of the suggestions created for that request have been processed (confirmed or canceled).Then, once that user processes those suggestions, the request will move to a closed status (299). In order to process this particular status of the request, user may follow E1: 46: To Solve Warehouse Management System Request in Status 250 (Doc ID 629796.1). Ressuggesting If a request is processed and the result is not satisfactory (lack of stock for example), it is easy to suggest again. Simply run the Location Selection Driver (R46171) against the specific request, putting a 1 in the ressuggestion tab. The Location Selection Driver (R46171) will wipe out the Item Unit of Measure Definition (F46011) records.

FIFO

Under JDE software, FIFO rule is related to expiration dates (first expired, first out) and not to receipt dates. Then, in order to make the picking instructions work under this nomenclature, make sure that FIFO flag is ON and the Roll Up flag is OFF. Also, make sure that the commitment method is set at a 3 for the FIFO item. On the other hand, if users need to get their suggestions based on receipt dates (first receipted, first out), both flags FIFO and Roll Up should be ON. Note: For additional details on this topic please review E1: 46: FIFO Picking in WMS Non-LPN (Doc ID 657416.1).

Phase Picking
The basis of Phase Picking is to move from a first physical location to a second one, before completing the pick. In the Industry, it can be useful when users need to complete an intermediary task between the physical picking, and bringing the item to the final dock. As an example it can be mentioned wrapping packages for Christmas, a temporary use if the dock is too full, quality control of products before sending to final docking. Go back to the item profile revision, and change the picking from 1 phase to 2:

At Location Profile (P46020) tab location, field Picking Staging Location, set location .. as phase 1 location.

The system will now suggest moving items from 1.A.1, where the stock resides, to .., and then from .. to D.., the final dock:

Enter a sales order:

Look at the Item Location (F41021) table, to see that the 100 on the order are now committed to the .. location. This is the first phase of the picking process.

Run the Location Selection Driver (R46171) UBE:

See all the instructions, From 1.A.1 to .., and then to D.., and from 1.B.1 to .., and then to D.. We also get the move tags:

Note: User may also review the white paper 2-Phase Processing (Doc ID 625552.1) for additional details on this process.
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Replenishment
Replenishment is the process of refilling picking locations with items. These items are obtained from a replenishment location that was set up to refill picking locations. Specific replenishment zones can be tied to specific picking locations or picking zones.

A replenishment request can be created in response to picking that depletes the items in a location. Replenishment requests are used to generate suggestions for locations from

which to replenish items. Replenishment requests can be created in the following ways: Using Manual Replenishments program (P46100) to create replenishment requests interactively. More detailed information can be found in knowledge document E1: 46: Batch Replenishment and Manual Replenishment (Doc ID 658162.1) Creating Replenishment Requests by Batch, using the Fixed Location Replenishment program (R461601). This process is typically used under normal warehouse operating conditions. All depleted fixed picking locations are selected and replenishment requests are created for them. The batch program should be run during off-peak hours when more system resources are available. Creating Replenishment Requests Automatically, using the Location Selection Driver program (R46171) to automatically replenish picking locations when picking depletes the stock to minimum replenishment levels. This process keeps picking locations sufficiently stocked. Using Replenishment to Random Locations program (R461602) to replenish random picking locations by generating a replenishment request when a picking location falls below the replenishment point. Replenishment to Random Locations is a flexible and powerful tool that can free up as much as 30% of the warehouse space. It allows replenishment of Random Picking Locations versus Replenishment of Fixed Picking Locations. It is not an automatic Replenishment, but a sleeper job that can be set-up to automate the process. Detailed information on this process can be found in knowledge document E1: 46: Replenishment to Random Locations (Doc ID 625561.1).

Replenishment Set Up
A new item is created, which will have the Warehouse process group HAZMAT. These items will go into a totally different set of locations. To do this, assign a different warehouse process. Note: The combinations CII/HAZMAT could have been used to do the same thing. Replenishment involves determining when and how inventory should be replenished, editing the replenishment documents, and moving or resupplying inventory from a reserve storage location to a primary picking location, or to another set of locations where picking can be performed. From the JDE perspective, replenishment is defined from locations that belong to a replenishment zone to picking locations. So, replenishment will be done from locations belonging to the replenishment zone REPHAZ to the picking locations defined for the item, warehousing process and picking instructions. IT5 has the process HAZMAT. The replenishment instructions for HAZMAT are via the table REPL. The picking instructions are via the table PICK. The locations R1.1, R1.2 and R1.3 have the replenishment zone set as REPHAZ.

A new set of locations will be created, with a new location dimension group, BLEU. The locations R.1.1 through R.3.3 are created. Those locations are NOT staging locations, and their location dimension group is BLEU.

Set the dimension BLEU:

Set the item IT5:

Set up the warehouse profile for item IT5

Set the item UoM, and have the capacity method of quantity checking:

Define capacity by item:

Define UoM by item:

Back to G46311, to start the replenishment set up. Define the replenishment selection:

The table REPL

Go to the Fixed Replenishment Locations. The title can be misleading. As a matter of fact, those locations are the TO locations, therefore the picking locations. Note: The radio button indicates Picking. There is no Replenishment location, only replenishment zones. In the location profile, assign the attribute Replenishment Zone to a location, therefore assigning this location and all the items that might be in it to replenishment.

The maximum pick quantity has nothing to do with replenishment. The Normal Replenishment Point and Min Replenishment point are only different in the case of batch replenishment, in which case the processing options behind the Fixed Location Replenishment (R461601) UBE denotes which one to use, under the replenishment control tab.

Define the UDC 46/ZN, REPHAZ as our replenishment zone for HAZMAT:

Location Master:

The Replenishment Zone is needed, but not necessarily the Pick Zone, since replenishment can be done by location. Adjust 1000 units of IT5 in the R.1.1, R.1.2 and R.1.3 locations. Make sure the locations already existing for this item:

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Basic Replenishment
The Fixed Location Replenishment (R461601) UBE off menu G4613 is typically run on a regular basis. This UBE will look at all the items that are below their replenishment point in their picking locations and find stock in the locations included in the replenishment zone to refill the picking locations. Note that if there are some inbound quantities to the specific picking location (for example a replenishment request not yet confirmed), those quantities are included in the total availability in the picking location. If that was not the case, hundreds of replenishment requests could be generated for one item in one location.

Each picking location has two replenishment points. The following replenishment points represent the quantity level that determines whether the Fixed Location Replenishment program (R461601) creates a replenishment request: Normal replenishment (for example, 25 percent capacity) Minimum replenishment (for example, 10 percent capacity)

The processing options for the Fixed Location Replenishment program can be set up to use either the normal or minimum replenishment point when creating replenishment requests. Typically, the normal replenishment point is used for the batch replenishment process (which is usually run once each day). The minimum replenishment point is typically used for automatic replenishments.

The processing options behind the Fixed Location Replenishment program must also be set up to determine the quantity that the system should replenish, as follows: Economic (a specific quantity that you determine) Maximum (the quantity required to completely refill the location)

When using the Economic method, the system looks at the quantity defined for the normal replenishment point and fills the picking location with this quantity. If this quantity exceeds the location capacity, the picking location is overfilled. For this reason, the capacity of the location should always be considered when using Economic replenishment and setting up the replenishment point.

When using the Maximum method, the system replenishes the picking location with the quantity needed to fill up the location.

Having made sure that we have inventory in R.1.1 through R.1.3, but nothing in the picking locations P.1.1 and P.1.2, set the processing options of the Fixed Location Replenishment (R461601) to use the normal replenishment and economic replenishment quantity:

Assign task and trips:

Run the report selecting the item IT5:

Get the move slips from R1.1 and R.1.2 to P.1.1 and P.1.2 for 1000 EA. Note that the replenishment requests are generated in status 220. A status 200 is only generated when using Manual Replenishment (P46100). If the Fixed Location Replenishment (R461601) is run again, there would be no suggestion. The system would integrate those 1000 EA into the calculations. Confirm the replenishment suggestion:

After confirming, check the availability: the quantities have moved from the locations in the replenishment zone to the picking locations:

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Auto Replenishment
Auto replenishment allows the system to call the replenishment operations directly from the picking operations. There are a few requirements to be met: 1. The FIXED picking locations can be attached to a picking zone (zone A in our example) and the replenishment locations to a replenishment zone (zone C). This way, by simply linking the zones and turning on auto replenishment in the picking instructions, auto replenishment is enabled. The replenishment zone can also be linked to each fixed picking location, without using a picking zone. 2. The replenishment can be random, but the picking has to be from FIXED locations. 3. The picking locations need to be defined in the Item Location file (F41021) 4. Economic replenishment will bring the economical amount from the replenishment location to the picking location. This quantity should be defined in a sensible manner because the system could overfill the picking location without going to the overflow location (O..), if the quantity defined in the replenishment point exceeds the location capacity.

Once those conditions are met, the system functions as follows: Create a sales order, which creates a picking request. If the picking location does not have enough stock, and the picking location has been linked to the replenishment location, the Location Selection Driver (R46171) will create the replenishment suggestion, for each picking location, the quantity depending on the method used (economic or maximum). Once the replenishment is confirmed, next step is to confirm the picking. As there are suggestions for the three locations, confirm only one. Example First, create a new item IT7. Go to the UDC 46/IT to create the replenishment instruction REPAUT:

Associate this new instruction table to the process CII using the Process Selection (P46093) application.

Get to the Locations Profiles (P46020). Define a picking zone A and a replenishment zone C.

Define three locations with picking zone A and one location with replenishment zone C.

Set up the fixed picking locations using the Fixed Locations (P46012) application:

Define the replenishment instructions, with the replenishment zone C.

Link the replenishment zone C to the picking zone A using the Fixed Replenishment Zones (P46051) application:

Enter the sales order for the item IT7:

The request is generated:

Run the Location Selection Driver (R46171) UBE.

The Location Selection Driver (R46171) UBE calls the Move Slips (R46472) UBE since the picking zone is linked to the replenishment zone, and it moves 100 units from 2.A.1 to 1.A.1 (used the economic solution):

Now, confirm the replenishment move as seen earlier, and then the picking move, as seen earlier too.
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Summary
Warehouses have an important role at several different levels of the supply chain. The types of warehousing operations and how the Warehouse Management system can be used to effectively solve typical business problems should be very well understood in order to understand the critical role that effective warehouse management plays in the distribution industry. The Warehouse Management system controls many aspects of warehouse operations, from receiving and storing items to retrieving and shipping them. Warehouses can be designed to make the most of the available space, employees' time, and the unique storage requirements of the goods stored. Each warehouse can be structured in almost limitless detail, so the exact location of everything, the exact quantity on hand, and the exact quantity that is available are always up to date. This detail allows the maintenance of a continuous flow of goods and offers the competitive edge in delivering goods to customers quickly and efficiently.
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UDC List
40/RV: Inclusion version 41/02: Warehouse process groups 46/ZN: Warehouse Management zones H40/LL: Level of detail H46/FR: Freeze rule 46/LT: Location Tax Code

46/EQ: Container code 46/LD: Location Dimension group 46/LC: Location Characteristics group H46/PT: One-two phase putaway table H46/PK: One-two phase picking table H46/RP: One-two phase replenish table H46/DM: Capacity method H46/EQ: UOM usage
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