HTW BerlinFB3, International Business, 4. Semester

Seminar Teaching SoSe 2010

Information Management IIWarehouse Management and Inventory

Dr. Irina Stobbe – STeam Science Software Sustainability

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

2

Outline

Warehouse structure Aspects of handling with inventory Physical inventory and adjustments Transferring items from w. to w. Inventory reporting

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

3

General Warehouse Processes

Purchase-Order

Selling Order

Put-away

Receipt

Pick Shipment

Main processes

Production-Order

Put-away

Receiveitems

Pick components

…..

…..

Transfer Adjustment Supporting processes,

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

4

Main Warehouse Management Tasks

Setting up and manage warehouse related master data Control and adjust inventory Configure and execute the receipt process Configure and execute intern warehouse processes Configure and execute shipment process Setting up item tracking

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

5

Possible functional design of a Warehouse

Picking bin

Receipt

Shipment

Pro

du

cti

on

b

in

Cro

ss

-do

ck

b

in

Pu

t-a

wa

y b

in

Wrapping

Storage (midterm)

Preparation

Backfilling bin

See Luscszak/Singer Dynamics NAV 2009, MSPress 2009

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

6

Setting up Warehouse

Define location code for each warehouse Define bins in your warehouse to specify the location of individual

items precisely. Add the fields for location management to the item and transfer

forms (Show column) Mandatory Location Codes: If place a check mark in Location

Mandatory field on the General tab in the Inventory Setup window, never leave the Location Code field empty when posting item

journal or sales/purchase lines

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

7

Extended text for an item

Extended Texts in Item Cards:

Texts describe the item on a sales or purchase document.

Item Card Item Extended Texts

More than one line is possible, and in different languages

See preview of purchase order ( function insert extended texts)

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

8

Setting up item tracking: Serial /Lot Numbers

Regards to TRACEBILITY: Definition: Traceability is the ability to chronologically interrelate

uniquely identifiable entities in a way that is verifiable. Traceability is the ability to verify the history, location, or

application of an item by means of documented recorded identification. (ASME)

Set flags for tracing each item per SN or Lot-Number all Numbers will be included in postings for shipping and receiving

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

9

Item Availability Checking the availability by periods and/or locations and variants Shows the quantity of the item that is inbound, outbound or in inventory on

a specific day or period Shows the kind of process where the item is involved: Gross

Requirements, Scheduled Receipt, Planned Order Receipt, Projected Availability Balance, Planned Order Released

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

10

Item Availability Checking the availability by periods and/or locations and variants Shows the quantity of the item that is inbound, outbound or in inventory on

a specific day or period Shows the kind of process where the item is involved: Gross

Requirements, Scheduled Receipt, Planned Order Receipt, Projected Availability Balance, Planned Order Released

Gross Requirement

This is sum of the total demand for the item. The total demand consists of independent demand (from sales orders, service orders and transfer orders) and dependent demand (production order components from planned, firm planned and released production orders, and requisition and planning worksheets). 

Scheduled Receipt

This is the sum of items from replenishment orders. This includes firm planned and released production orders, purchase orders and transfer orders. 

Planned Order Receipt

This is the sum of items from replenishment order proposals. This includes planned production orders, planning worksheets and requisition worksheets. 

Projected Available Balance

This is the calculated available inventory. 

Planned Order Releases

This is the sum of items from replenishment order proposals (planned production orders, planning worksheets and requisition worksheets) calculated according to the starting date (in the planning worksheet and production order) or the order date (in the requisition worksheet).This sum is not included in the projected available inventory. However, it indicates which quantities should be converted from planned to scheduled receipts.

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

12

Adjustment of Items in a Warehouse

adjust inventory in connection with purchases, sales, and positive and negative adjustments.

Posting updates only the inventory accounts (financial accounts will be changed in additional posting if it is requested)

Item Journal: Batch job template to prepare the posting Purchase value on unit price Sale value on unit cost Pos. Adjustment value on unit cost Neg. Adjustment value on unit cost

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

13

Inventory in Transfers

Where to find an item that is not in bins but in transfers? create In-Transit Locations

– so much as it is useful Create Transfer Routes -

from x to y by

Shipping Agents Code

(DHL, FEDEX, UPS, OwnExp…)

Shipping Agent Service Code

(STD, NEXT DAY)

Location List (Code) Create In-Transit Locations

Create Transfer Routes

Transfer Routes Matrix

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

14

Transfers

Transfers between two locations Create the Transfer Order from the

transfer-from or the transfer-to location

Shipping: Post the Transfer Order with „Ship“

Receiving: Change Status to Released

Post the Transfer Order with „Receive“

Location and In-Transit List (Code)

Create Transfer Order

transfer-from location

Item Card:Location Code

BLUE

Item Card:Location Code

RED

Shipping Item

Item Card:Location Code

OWN LOG.

Item Card:Location Code

OWN LOG.

Receiving ItemItem in Transit

Item in Loc. RED

Item in Loc. BLUE

transfer-to location

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

16

Bills-of-Material (BoMs)

Sales BoM describes a list of materials to be sold together

Sales BoM differs from production BoM

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

17

Reports (1)

Item Statistics window Item Statistics Select different filters

Time filter: Periods Type Filter: Net Change, Balance at

Date Lines: Profit or Cost Calculation,

Item Charge Specification Columns: Location or Periods Date Period calculated Item(s) Locations Variants Calculate per unit or Sum

Export to Word or Excel

Select reportsPrint or export

reportsReport required

Reports finished

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

18

Reports (2)

Item Entry Statistics Window Item Statistics Entry Statistics Recently posted receipts, sales , purchases, positive and

negative adjustments, shipments To be posted: last and next purchase receipts and sales

shipments Item Turnover Window

Item Statistics Turnover Sales and purchases if the item by value and quantity for

the period indicated to the left Net Change or

Balance at Date

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

19

Reports (3)

Item Ledger Entries Window Item Entries Ledger Entries All of the item‘s movement in and out of inventory due to purchases, sales,

production, inventory adjustments, transfers and more

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

20

Inventory Reports (4)

Inventory Picking List List of items, that needs to be picked (for shipment)

Inventory Put-away List List of items that need to be removed from a certain location or

transported to a storage area

Inventory Cost and Price List Direct unit cost, last direct cost, unit price, profit percentage, and

profit

Inventory – Availability Inventory – Customer Sales Inventory Order Details Inventory – Sales Statistics

– All reports can be exported to Excel or Word directly (XML)

Select reportsPrint or export

reportsReport required

Reports finished

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

21

Student‘s presentation / Labs

Items in a Warehouse Step 1: Creating an item Step 2: Purchasing an item Step 2a: Putting away in to a warehouse Step 3: Producing an item Step 4: Transferring items from w. to w. Step 5: Selling an item Step 5a: Picking an order Step 6. Archiving an item entry

P

W

WS&M

W

FM

S, P, W

M

S&M Sales & Marketing, P Purchase, M Manufacturing, W Warehousing, FM Financial Management

©D

r. Ir

ina

Sto

bbe,

HT

W B

erli

n, S

S 2

010

Inte

rnat

iona

l Bu

sin

ess,

In

form

atio

n M

anag

em

ent

2

22

Test your knowledge

Which processes contribute to the turnover of the enterprise (select all that apply) Sales Purchase Adjustment Transfer

Which process steps in a sales process are related to the warehouse management? (Select all that supply) Receipt of item Shipping of item Pick the items Put-away the item Payment of invoice