WAREHOUSE MANAGEMENT

Enterprise Structure

Master Data

Strategies

Putaway Strategies

Pickaway Strategies

Contents

Physical Inventory WM point of view

Purpose of Warehouse

· Define and manage complicated warehousing structures

· Information of material at Bin level

· Optimize material flow using advanced put-away and picking techniques

· Material attributes are taken into account

· Capacity Check at Bin level

· Process goods receipts, goods issues and stock transfers accurately and easily

· Interface with other module/sub-modules

· Shelf life items and Hazardous items handling

Warehouse Management

• Highest level in warehouse - warehouse number

• Assigned to a combination of Plant and Storage Location

Enterprise Structure

Create Warehouse Number

Assign Warehouse No to Plant and Storage Location

Warehouse

Storage Type Storage Type

Storage Section

Storage Section

Storage Section

Storage Section

Storage Bins

Storage Bins

Warehouse Structure

Master Data

Path: - Logistics Execution -> Warehouse Management -> Master Data

Storage Type

A storage type is a storage area, warehouse facility, or a warehouse zone that you define in Warehouse Management (WM) for a warehouse number. This is a physical or logical subdivision of a warehouse complex that is characterized by its warehouse technique, the space used, its organizational form, or its function

You can define the following frequently-used physical storage types in WM:

• Bulk storage• Open Storage• High rack storage• Picking area• Shelf storage

In Warehouse Management (WM), a storage section is an organizational subdivision of a storage type that groups together storage bins with similar features for the purpose of putting away stock.

The criteria for grouping bins can be defined on a user-individual basis for example.• Heavy parts • Bulky materials• Fast-moving items• Slow-moving items• Special Temperatures• Fire Protection• Others

Storage Section

Storage Bin Type and Blocking Reason

A storage type generally contains several storage spaces or slots. These are called storage bins in Warehouse Management (WM). The storage bin is the smallest available unit of space in a warehouse. The storage bin therefore describes the position in the warehouse where the goods are or can be stored. Since the address of a storage bin is frequently derived from a coordinate system, a storage bin is often referred to as a coordinate. The coordinate 01-02-03 for example, can refer to a storage bin in row 1, stack 2, and level 3.

You can also define the following additional characteristics of a storage bin:

• Maximum weight • Total capacity• Fire containment section• Storage bin type (for example,

for small or large pallets)

Storage Bin

Storage bins

Putaway Strategies

· Next empty bin

· Fixed bin

· Manual entry

· Adding to existing stock

· Bulk storage

· Open storage

· Storage unit type

Picking Strategies

· FIFO

· LIFO

· SLED

· Partial Quantities

· Large / small quantities

Putaway and Pickaway Strategies

Putaway and Pickaway Strategies

Putaway and Picking Strategies:In the Warehouse Management (WM) application component, you employ putaway and removal strategies used by the system to search for storage bins in the most expeditious manner.

Putaway Strategies:For inbound movements, in conjunction with controls entered in the material master record, the putaway strategies assist the WM system to utilize the available warehouse capacity, automatically assigning optimum locations for goods received in the warehouse.

Picking Strategies:For outbound movements, the system uses similar user-defined controls to execute the appropriate picking strategy to assign the best picking location. If you decide to manually process certain stock movements, you can change source and destination storage bins that are automatically proposed by the system.

When the system creates transfer orders to move goods into or out of the warehouse, you do not have to intervene when it comes to finding storage bins. This guarantees that stock movements are processed quickly and consistently.

Put-away Strategies

Pickaway Strategies

Goods Receipt Process

Goods Issue Process

The system must now determine in which storage type the material should be put away and Pickaway. You define this information in the storage type search table. To make entries in this table, see the section on defining the storage type search sequence under Strategies in the Warehouse Management IMG documentation.In the storage type search table, you can define a search sequence with up to thirty storage types. (Make sure that you enter an E for putaway and A for Pickaway in the column Activity). This means that the system uses the search sequence for searching for a destination storage type.

Storage Type Search

Storage Section Search

You can divide a storage type into several storage sections (see The Storage Section) in which various materials can be stored. You can use these storage sections, for example, to ensure that frequently used materials ("fast-moving" items) are stored in the front of the warehouse while seldom used materials ("slow-moving" items) are stored in the back of the warehouse. A storage type is divided into storage sections on the basis of storage bins. When you create a storage bin, you assign it to a storage section.

Storage Bin Type Search

Storage Bin Search:

Once the storage type has been determined, the system then searches within the storage type to find an appropriate storage bin in which the material can be put away and removed. To find a storage bin, the system uses a search strategy that has been defined for the storage type. For each storage type you can define a putaway and Pickaway strategies.

Strategies – Putaway and Pickaway

You can also define storage types in WM that are shared by both the Inventory Management (IM) and Warehouse Management (WM) application components. These are called interim storage areas and include the following.• Goods receipt area • Goods issue area • Interim storage area for differences • Posting change zone

Interim Storage Area:

Path: LE -> Warehouse Management -> Interfaces -> Inventory Management -> Generate Interim Storage Bins

Interim Storage Area or Bins

Transaction Codes - WM

1. MM01 - Create Material Master with WM view’s

2. ME21N - Create PO3. MIGO – Create GR with respect

to PO4. Transfer Requirement (TR) is

created While doing MIGO5. LT06 - Create TO (Transfer

Order) with respect to Material Document Number

6. LT31 - Print TO7. LT12 - Confirm TO8. LS26 – Stock Overview

Goods Receipt Process(Putaway)

Material Master WM view

Goods Receipt (MB1C)

LT06 -Create TO with ref to Material Document

Display Transfer Requirement (TR)

Transfer Order will be created after Saving

LT12 – Confirm TO

LT12 – Confirm TO

LT21 – Display Transfer Order

LT21 – Display Transfer Order

LS26 - Stock Overview