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11dis60s-allocation,picking,shipping

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11dis60s-allocation,picking,shipping

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    Unit 11Allocations, Picking and

    Shipping

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    4/29/2010

Unit 11Allocations, Picking and Shipping

    Unit Introduction .............................................................................................................. 1

    Unit Objectives .......................................................................................................... 1

    Terminology ............................................................................................................... 2

    Allocations....................................................................................................................... 6

    Inventory Allocations ....................................................................................................... 7

    Allocation Within the Order Cycle.............................................................................. 8

    Warehouse AllocationSoft ..................................................................................... 9

    Lot/Location/Container AllocationFirm or Hard..................................................... 10

    Allocation Logic ....................................................................................................... 11

    Allocation of Items Stored in Multiple Warehouses/Locations/Lots .................... 12

    Methods of Allocation .................................................................................................... 14

    Batch Order AllocationAutomatic ......................................................................... 14

    Pickable Orders Report ..................................................................................... 16

    Order Exception Report ..................................................................................... 17

    On-line AllocationManual ..................................................................................... 18

    Allocation Locking.................................................................................................... 19

    Fair Share Allocations Report ............................................................................ 19

    Backorder Allocation ................................................................................................ 20

    Backorder Codes ..................................................................................................... 21

    Drop Codes........................................................................................................ 21

    Customer Order Picking ............................................................................................... 22

    Pick Release ................................................................................................................. 24

    Backorder Code Audit ............................................................................................. 27

    Implementation Considerations for Optimal Pick Sequencing ................................. 28

    Customer Order Consolidation ................................................................................ 30

    Warehouse, Outbound Logistics Management and Pick Release Functions .......... 32

    Replenishment ................................................................................................... 35

    Pick Release Processing......................................................................................... 36

     Table of Contents 11-i

    Pick Slip Printing ................................................................................................ 37

    Pick Confirm Processing ......................................................................................... 39

    Print Selected Documents .................................................................................. 42

    Customer Order Shipping.............................................................................................. 43

    Ship Confirm Processing (OLM not installed) .......................................................... 44

    Ship Confirm Process Flow ................................................................................ 44 Allocations, Picking and Shipping Review ..................................................................... 45 List of Figures

    Figure 11-1. Allocations .................................................................................................. 6 Figure 11-2. Inventory Allocation Within the Order Cycle ............................................... 8

    Figure 11-3. Soft Warehouse Allocations ....................................................................... 9

    Figure 11-4. How Orders are Visible ........................................................................... 10

    Figure 11-5. Batch Order Allocation ............................................................................. 15 Figure 11-6. On-Line Allocation Processing ................................................................. 18

    Figure 11-7. Allocation Locking .................................................................................... 19 Figure 11-8. Backorder Allocation ................................................................................ 20 Figure 11-9. Example of Customer Order Picking ........................................................ 22

    Figure 11-10. Customer Order Processing Picking Cycle ............................................ 23

    Figure 11-11. Processes within Pick Release .............................................................. 24

    Figure 11-12. Picking Process when OLM is NOT Installed ........................................ 25

    Figure 11-13. Picking Process when OLM is Installed ................................................. 25

    Figure 11-14. Pick Sequencing System ....................................................................... 28

    Figure 11-15. Batch Pull Pick List Order ...................................................................... 29

    Figure 11-16. Customer Order Consolidation - Pick Release ....................................... 30

    Figure 11-17. Customer Order Consolidation - Pick Confirm ....................................... 31

    Figure 11-18. Pick Release without OLM ..................................................................... 32

    Figure 11-19. Load Generation During Pick Release ................................................... 33

    Figure 11-20. Load Generation After Pick Confirmation ............................................... 33

    11-ii Supply Chain Management WorkshopStudent Guide

    Figure 11-21. Replenishment ....................................................................................... 35 Figure 11-22. Pick Release Process Flow ................................................................... 36 Figure 11-23. Pick Confirm Processing ....................................................................... 40 Figure 11-24. Customer Order Shipping Performs these Functions ............................ 43 Figure 11-25. Ship Confirm Process Steps ................................................................. 44 List of Tables

    Table 11-1. Backorder Flags ........................................................................................ 21 Table 11-2. Backorder Code Definitions ...................................................................... 27 Table 11-3. Consolidation Stages and Options ............................................................ 31 Table 11-4. Pick Slip, Inventory, and Billing Updates for Order Classes ...................... 41 Table 11-5. Print Selected Documents ........................................................................ 42

     Table of Contents 11-iii

11-iv Supply Chain Management WorkshopStudent Guide

Unit Introduction

    This unit covers the allocation of line items on customer orders and details the various options relating to the picking and shipment of goods from managed and non-managed warehouses. It also covers customer order picking, shipping, and outbound logistics management.

    Unit Objectives

    At the end of this unit you will be able to:

    ? Perform the picking and shipping of goods from the warehouse. ? Illustrate customer order picking and shipping flow. ? List the selection criteria which facilitates order picking. ? Demonstrate the pick sequencing process. ? Create backorders and backorder allocations. ? Generate documentation.

    ? Determine Outbound Logistics Management concepts. ? Discuss rules governing inventory allocations. ? Describe soft versus hard allocations.

    ? Describe automatic and manual allocations.

     Allocations, Picking and Shipping 11-1

    Terminology

    Listed below are terms presented in this unit.

Inventory on-hand that may be assigned to specific customer or shop Allocatable

    orders.

    Material on-hand or on order that is assigned to specific customer or Allocated Material

    shop orders.

    Allocation Locking Putting a do not change flag on existing allocations for a given order

    line. Used for partial and fair share allocations. Automatic allocation logic is called by programs trying to reserve Automatic Allocation

    specific inventory for customer orders. Initiating the automatic allocation logic for a group (batch) of orders. Batch Allocation

    The carrier is the representative responsible for the physical movement Carrier

    of goods. Usually, this is the transport or trucking company.

    The process of informing the system that a movement instruction is Confirmation

    completed. Warehouse Management supports five types of movement:

    Picking, Replenishment, Manual Movement, Inter-Warehouse Transfer, and Put Away. Depending on the parameters set, each may

    be considered complete at the time that the movement was initiated, or

    selected movement types may be manually confirmed. The consignee is the recipient to whom the shipment is sent. This Consignee

    usually corresponds to the ship-to customer. The process of preparing orders for shipping and processing them as a Consolidation

    group using an assigned consolidation number. Remove existing hard allocations for an order line. De-Allocate

    Splitting limited inventory among several customer orders. Fair Share Allocation

    Full pallets are picked either from main storage or from the highest Full Pallet Picking

    level picking location defined for the item. This is available in a

    managed warehouse.

    11-2 Supply Chain Management WorkshopStudent Guide

An allocated item is one for which a picking order is released to the Hard Allocation

    stockroom but not yet sent out of the stockroom and the available

    inventory is assigned to a customer order at the location, lot, and

    container level.

    Inventory Allocation BPCS supports soft allocations by warehouse level and hard

    allocations by location and/or lot and/or container.

    A group of orders for a single carrier, means and destination. Load

    The process of selecting orders and combining them into shipments. Load Building

    These shipments are then organized into loads.

    The process of organizing orders into shipments which are in turn Load Planning

    combined into full loads for release to the appropriate carrier. The Outbound Logistics Management (OLM) product is required for load

    planning to be done.

    Locations are physical spaces defined within a warehouse to support Location

    movement and storage of goods. You can define locations to exist

    within a defined area or area/zone of the warehouse. The hierarchy

    within a managed warehouse is area, zone, location.

    When stock is received into the warehouse, the system suggests where Managed

    it may be stored. Very strict rules may be set up to control inventory Warehouses

    movement and order fulfillment. Manual initiation of allocation activity and possible user selection of Manual Allocation

    allocation location, lot, and container. A dedicated pick location may be entered for each storage level used Multi-Level Picking

    by the item.

    The system is used to record inventory adjustment or movements as Non-Managed

    they take place. Less strict controls are established for inventory Warehouses

    control and movement.

    Ship products, track and validate freight invoices received from Outbound Logistics

    carriers, and allow costs associated with freight to be tracked at an item Management (OLM)

    level. Proactive load management is done using OLM.

    A pick staging system used to increase efficiency when picking items Pick Sequencing

    from various zones or locations.

     Allocations, Picking and Shipping 11-3

The process of withdrawing from stock the products to be shipped to a Picking

    customer.

    Confirming the quantity picked and initiating inventory updates. Picking Confirmation

    The process of releasing open orders and printing pick slips. Once Picking/Shipping

    pick slips have been printed, the order is described as picked.

    The designation of a certain storage location as the standard, preferred Primary Location

    location for an item.

    Replenishment Relocating material from a bulk storage area to an order pick storage

    area.

    The shipper or consignor is the address from which goods are shipped. Shipper

    In most cases, this is the address of your shipping department.

    The department providing facilities for the outgoing shipment of parts, Shipping

    products, and components. It includes packaging, marking, weighing,

    and loading for shipment.

    A document also known as a Master Bill of Lading that lists the pieces Shipping Manifest

    in a shipment. A manifest usually covers an entire load regardless of

    whether the load is to be delivered to a single destination or many.

    Manifests usually list the piece count, total weight, and the destination

    name and address for each destination in the load. Demand for an item which is placed against the warehouse, but Soft Allocation

    specific assignment of available inventory to the customer order has

    not yet been done.

    A trading partner is a participant in the process of shipping goods from Trading Partner

    the supplier to the customer.

    Specification of limits based on Weight, Volume, and Units. Pick Lists Volumetric Picking

    are sub-divided if any of the limits specified are reached.

    11-4 Supply Chain Management WorkshopStudent Guide

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