Topic overview

The storage strategy is an important part of storage location control. It consists of several individual strategies that together specify the procedure during put-away and withdrawal in storage location-controlled warehouses. These
strategies include the put-away and withdrawal strategies, picking strategies and replenishment strategy. In all these strategies, many factors defined in the system are taken into consideration, such as the criteria for item inventories and the properties of the storage locations. Further information can be found in the article Introduction: Storage strategies.

This article describes how the Storage strategies application is structured. In this article, you will lean how a storage strategy relates to other applications and business entities and how it is integrated into the business processes.

Instructions for handling storage strategies, e.g. how to create or edit storage strategies, can be found in the article Procedures: Storage strategies.

Definitions of terms

Filling restriction

A fill restriction is the characteristic used to limit the put-away of items to a storage location or a slot on which items are already stored. This characteristic can be, for example, the item (filling segregated by item), the batch or the lot (filling segregated by identifier), or the best-before of a batch/the generation date of a lot.

Filling strategies

The replenishment strategy makes it possible to specify whether replenishing partly depleted quantities is to be prioritized over put-away on empty storage locations. If inventory cannot be put away through replenishment, an attempt will follow to do so by means of the put-away strategy.

Withdrawal sort order

A withdrawal sort order specifies the sequence in which aisles, rows, levels, and storage locations of a warehouse zone are considered for withdrawal. A withdrawal sort order has an effect only when the withdrawal strategy determines several inventories of the same age.

Withdrawal strategy

A withdrawal strategy comprises various characteristics which are used to determine the behavior of withdrawals from structured warehouses. The age of the item inventory is taken into account and the inventory is withdrawn according to a defined consumption sequence, e.g. according to the FIFO principle (First In, First Out). The age is kept to the day for each item inventory and indicates the first put-away. For items managed by lots or by serial numbers, the identifier creation date is used as a basis for determining the age; for items managed by batches, the expiration date is used.

Bulk additions to existing stock

With bulk additions to existing stock, goods are stored either until the storage location is completely full or the time limit has expired. Only from this time can inventories be picked from the storage location again. This means that the put-away dates of the inventories in the storage location are as similar as possible. Bulk inventory addition is often used together with bulk locations or fixed locations.

Put-away sort orders

A put-away sort order specifies the sequence in which aisles, rows, levels, and storage locations of a warehouse zone are considered when putting away inventory. The put-away sort order can achieve, for example, transverse or row-oriented put-away.

Put-away strategy

The put-away strategy is used to determine the criteria by which suitable put-away locations are identified for item inventory to be stored. For this, several properties stored in the system are considered, e.g., characteristics of the item inventory and the attributes of the put-away location. Possible put-away strategies are bulk additions to existing stock and empty location strategy.

FIFO

The FIFO (first in—first out) valuation method sets the sequence of inventory removal and is also a method of inventory valuation for fiscal (taxation) purposes. In FIFO, inventory that was put away first will also be withdrawn first. The inventory value is calculated on the last inventory received.

Fixed location

A fixed location is a storage location assigned to a specific item. Only item inventories without storage units can be put away in a fixed location.

Picking strategies

The picking strategy controls the behavior for picking. The picking strategy may include picking via the issue of goods zone or direct bin picking via the storage locations of the Reserve utilization.

Storage strategies

The storage strategy is an essential component of storage location control. It consists of several individual strategies that control the behavior of put-away and withdrawal for structured warehouses. These strategies include the picking strategy and the replenishment strategy.

LIFO

The LIFO (Last In, First Out) assessment process is a consumption-based process and a fiscal valuation method (according to taxation law). LIFO stands for the assumption that the last inventories acquired will be consumed first. The calculation of the inventory value is therefore based on the receipts received first.

Application description

The Storage strategies application is used to create and edit storage strategies. You can use the recorded storage strategies in other applications, e.g. Items, Warehouses or Storage location types.

The Storage strategies application is not divided into an identification pane and a work pane. It only has one work pane with input fields.

Input fields:

• Storgage strategy – in this field, enter an identification for a storage strategy that you want to open or create. You can assign an identification manually during the initial entry, which may contain a maximum of 25 characters and is unique within an OLTP database. You can select numbers, letters or a combination of numbers and letters to assign the identification. Once the storage strategy has been saved for the first time, the identification can no longer be changed. The identification is used for finding the correct storage strategy in other applications.
• Description – the description is an additional name for the storage strategy. It can consist of freely selectable text. Meaningful description is recommended as it simplify the search for it.
  Note

  When using special characters, please note that for technical reasons these are converted into the following placeholders in a character string to be searched for:

  • Asterisk (*) to underscore (_)
  • Question mark (?) to percent sign (%)

  The use of an underscore in a search feature would not only search for the underscore, but for any character. The percentage sign is evaluated in the same way, which then corresponds to none, one or more characters. The use of underscores and percent signs in character strings should therefore be avoided as far as possible, as other and more objects may be found than intended.

• Put-away strategy – In this field, enter a put-away strategy. If an item inventory to be put away could not be put away in full through filling of part quantities, it is attempted with the put-away strategy to determine empty storage  locations. If the storage location type provides for the use of storage units, the put-away must involve the same  storage unit as already exists in the slots. Mixing storage units in a storage location is not permitted. For a put-away, storage locations of the Picking location without storage unit storage location category are not taken into consideration.
  Possible put-away strategies are:
  • Empty location
    In the case of the Empty location put-away strategy, only empty storage locations are taken into consideration. If the storage location is sub-divided into slots, at least one of the slots must be empty.
  • Bulk additions to existing stock
    In the case of the Bulk additions to existing stock put-away strategy, the put-away takes place under consideration of the time limit for bulk additions to existing stock. The time limit for bulk additions to existing stock is reset at the first put-away in an empty storage location and indicates a period in which the storage location is available for further put-away and is not taken into consideration for withdrawal. In the case of this put-away strategy, only storage locations of the Bulk storage location with storage unit, Fixed location with storage unit and Storage location without storage unit storage location categories are taken into consideration.
    If you use the Bulk additions to existing stock put-away strategy, the inventory in the storage location must be segregated both by item and identifier after the put-away.

• Withdrawal strategy – in this field, enter a consumption sequence method for withdrawal. In all storage strategies, the item inventories to be withdrawn are determined according to their FIFO and LIFO date. Which date is used depends on the identifier of an item:
  For items that are managed in lots or serial numbers, the generation date of the identifier is used as the FIFO or LIFO date. For items in batches, the expiration date of the batch is used.
  The following applies to items without an identifier: in the case of a put-away, the put-away date is used as the FIFO date. In the case of a relocation to a warehouse zone or storage location in which no inventory of this item is yet available, the FIFO date of the source warehouse zone or storage location is used. When inventory is relocated for a receipt of goods, the generation date of the inventory order is used.
  Possible values are:
  • FIFO
    FIFO (First In First Out) stands for the assumption that the inventories put away first are also withdrawn first.
    The settings of the warehouse structure observation are taken into account when determining the inventory to be withdrawn.
    • If the requested quantity could not be determined in a warehouse zone by withdrawing partial quantities, full storage unit is withdrawn from reserve locations in the same warehouse zone. Full storage unit is withdrawn until the remaining quantity to be withdrawn is smaller than the capacity of the last storage unit withdrawn.
    • If there is a fixed picking location for the item in the warehouse zone, the system first attempts to withdraw the remaining quantity from the fixed picking location.
    • If Preferred is selected for the fixed location withdrawal strategy, the FIFO method is given lower priority. If there is no fixed location in the warehouse zone, the remaining quantity is withdrawn directly from one of the reserve locations.
      If partial quantities are to be withdrawn first, the FIFO method is given lower priority.
      If the FIFO date of several inventories is identical, the inventory is withdrawn according to the withdrawal sort order.
  • Strict FIFO
    In the case of the Strict FIFO withdrawal strategy, all item inventories in the warehouse zones to be taken into consideration are determined strictly according to their FIFO date. Therefore, neither part quantities are preferred for withdrawal nor the withdrawal restrictions defined for the warehouse, item or the inventory item classification are taken into consideration.
    Warehouse zones with the usage Receipt of goods, Issue of goods and Inventory count differences are not taken into consideration. Inventory items in picking locations are not taken into  consideration, either. Fixed locations are not treated as preferred, irrespective of their withdrawal strategy. As a result, the oldest item inventory in the warehouse is withdrawn first in each case.
  • No method determining the sequence of goods issues
    The settings of the warehouse structure observation are taken into account when determining the inventory to be withdrawn.
    • If the requested quantity could not be determined in a warehouse zone by withdrawing partial quantities, full storage unit is withdrawn from reserve locations in the same warehouse zone. Full storage unit is withdrawn until the remaining quantity to be withdrawn is smaller than the capacity of the last storage unit withdrawn.
    • If there is a fixed picking location for the item in the warehouse zone, the system first attempts to withdraw the remaining quantity from the fixed picking location.
      If Preferred is selected for the fixed location withdrawal strategy, the None method is given lower priority. If there is no fixed location in the warehouse zone, the remaining quantity is withdrawn directly from one of the reserve locations.
      If partial quantities are to be withdrawn first, the None method is given lower priority.
      The inventory is withdrawn according to the withdrawal sort order; the FIFO or LIFO date is irrelevant.
  • LIFO
    LIFO (Last In First Out) stands for the assumption that the last inventory stored is withdrawn first.
    The effect of this setting corresponds to the FIFO setting. However, the last inventory put away is taken into account first.
    If the LIFO date of several inventories is identical, the inventory is withdrawn according to the withdrawal sort order.

• Replenishment strategy – with the replenishment strategy, you can specify whether replenishment of part  quantities has priority over put-away in empty storage locations of the same warehouse zone. During replenishment, it is attempted to restore the highest inventory level in the storage location. A part quantity means that the current inventory is lower than the highest inventory level of the storage location. Replenishment is possible in storage locations with and without storage units. An empty storage unit in a storage location does not have an inventory and is therefore not considered as a part quantity. Thus, an empty storage unit cannot be replenished. The same applies to empty storage locations without storage units, such as picking locations.
  Possible replenishment strategies are:
  • All storage locations – in the case of the All locations replenishment strategy, storage locations in the Picking location without storage unit storage location category also taken into consideration. The storage locations are included in the sequence defined by the put-away restriction and put-away sort order. The picking  locations are not replenished with any preference. While replenishing fixed picking locations, the  replenishment definition saved in the replenishment lot size is not taken into consideration. With  replenishment, it is attempted to reach the highest inventory level (and not inventory capacity) at the picking location.
  • All locations except picking locations – in the case of the All locations except picking locations replenishment strategy, storage locations in the Picking location without storage unit storage location category are not taken into consideration.
  • Do not replenish – replenishment is not performed in the case of the Do not replenish replenishment strategy.
  Note

  Replenishment of part quantities can result in a breach of the FIFO principle or the LIFO principle. Please note that the put-away date of an item inventory that is already in the storage location is accepted for the inventory to be put away for non-identifier-managed items. The identifier-managed items accept the put-away date for the FIFO and LIFO consumption sequence methods.
• Warehouse structure observation – in this field, you specify whether the settings for withdrawal behavior are applied per warehouse zone or across all warehouse zones. Possible values are:
  • Per warehouse zone – the settings for withdrawal behavior are applied individually for each warehouse zone. The warehouse zone sequence is considered based on the relevant withrawal restriction or zone sequence specified for the warehouse.
  • Cross-warehouse zones – the settings for withdrawal behavior are applied to all warehouse zones (exception: inventory difference zone). In the Warehouses application, the settings for withdrawal behavior are transferred to all warehouse zones with the Manual storage strategy. The settings for the picking strategy remain unaffected by this.
  Note

  The field is not selectable for the consumption sequence method Strict FIFO and is permanently set to Cross-warehouse zones.

  In the other consumption sequence methods, picking locations are also taken into account in the case of withdrawal across warehouse zones. However, these are not considered separately.

• Put-away sort order – in this field, enter the sorting sequence of storage locations for put-away for the following structure levels:
  • Aisle
  • Row
  • Location
  • Level

  The sort order is defined using the Define sort order dialog box that you open using the diamond button in front of the field. Here you can specify for each structure level whether it should be taken into account and in which order.
  Since warehouses and warehouse zones can have different warehouse organizations, all structure levels are displayed as a matter of principle. Values for a structure level that are of no use according to a particular warehouse organization are ignored in the sort order.
  If the utilization of aisles is activated in the Customizing application and the warehouse organization has rows, the rows can be compiled into aisles. Typically, an aisle consists of rows that can be operated from the same physical area. In the put-away order, both rows and aisles both can be sorted. However, aisles should appear before rows. If you enter a sequence for the aisles that is larger than the one for the rows, the value will be ignored during the put-away.

• Withdrawal sort order – in this field, enter the sorting sequence of storage locations for withdrawal for the following structure levels:
  • Aisle
  • Row
  • Location
  • Level

  The sort order is defined using the Define sort order dialog box that you open using the diamond button in front of the field. Here you can specify for each structure level whether it should be taken into account and in which order.
  Since warehouses and warehouse zones can have different warehouse organizations, all structure levels are displayed as a matter of principle. Values for a structure level that are of no use according to a particular warehouse organization are ignored in the sort order.
  If the utilization of aisles is activated in the Customizing application and the warehouse organization has rows, the rows can be compiled into aisles. Typically, an aisle consists of rows that can be operated from the same physical area. In the withdrawal order, both rows and aisles both can be sorted. However, aisles should appear before rows. If you enter a sequence for the aisles that is larger than the one for the rows, the value will be ignored during the withdrawal.

• Filling restriction – in this field, specify which condition is to apply for replenishment during put-away. During put-away, a total of two or three filling restrictions are taken into account when determining the storage location and applied one after the other: the storage location filling restriction and then, if applicable, the storage location filling restriction of the storage location type and finally the filling restriction of the storage strategy.If at least one of these filling restrictions prohibits the use of a storage location, no put-away will take place in this storage location. Possible values are:
  • None – the storage location or slot can be filled without restriction.
  • Process – the stock of another item can be put away in the storage location or warehouse if there is an open issue or receipt for the storage location or warehouse from the same process in which the put-away takes place. For example, several items that are received with the same receipt of goods voucher can be put away in the same storage location.
    Note

    If free inventory is already stored in the storage location or slot, the storage location or slot cannot be replenished with this filling restriction, as the inventory does not belong to a put-away process.
  • Classification – the inventories of other items can be put-away in the storage location or warehouse if they belong to the same warehouse item classification 1 as the item already stored.
  • Item – only the inventory of exactly one item can be put away in the storage location or warehouse. Different identifiers are permitted.
  • Batch expiration date/lot generation date – batches with the same expiration date or lots with the same generation date can be put away in the storage location or slot.
  • Batch/lot – only one batch or only one lot of an item can be put away in the storage location or slots.

  In this case, an identifier-managed item of the type Serial number with inventory management or Serial number without inventory management is treated as an item without identifier. If necessary, see the explanation of the Item entry.

• Picking strategy – in this field, enter a picking strategy. The picking strategy decides how an item inventory
  is withdrawn from a reserve location. The picking strategy does not play a part in the withdrawal of a fixed picking location. Possible picking strategies are:
  • Any storage location – in the Any storage location picking strategy, the required quantity is withdrawn directly from the storage location. However, inventory relocations across warehouses take place through the issue of goods zone of the source warehouse and through the receipt of goods zone of the destination warehouse.
  • Picking point – in the Picking point picking strategy, the withdrawal takes place through the issue of goods zone with a return transfer to the source storage location. A warehouse internal relocation takes place through the receipt of goods zone. If the destination warehouse zone is not structured, i.e., it is not subdivided into storage locations, the relocation takes place directly from the source storage location to the destination warehouse zone.
  • Picking point without return transfer – in the Picking point without return transfer picking strategy, the goods are withdrawn via the issue of goods zone without being returned to the source storage location. Use this strategy, for example, if you only ever pick small quantities and many consecutive picks require the same item. In this case, you do not always have to put the items back with a return transfer order.Intra-warehouse relocation transfer takes place via the receipt of goods zone. If the destination warehouse zone is not divided into storage locations, the relocation takes place directly from the source storage location to the destination warehouse zone.With this strategy, it should be defined for the warehouse that the issue of goods zone is given priority when inventory orders are created. Otherwise, any quantity not put back would remain in the issue of goods zone.
  Note

  For inventoried or non-inventoried items managed in serial numbers, the Any storage location picking strategy is used in each case.
• Fixed location put-away strategy – in this field, you can define how fixed locations are to be taken into consideration for the put-away. Possible values are:
  • Not preferred – in the case of the Not preferred fixed location put-away strategy, the item definitions of the fixed locations are understood only as an item restriction. Fixed locations can be used only for the items assigned in each case.
  • Preferred – in the case of the Preferred fixed location putaway strategy, fixed locations take precedence for
    the put-away over the reserve locations. If the total inventory has not been put away in fixed locations, it is attempted to put the item away to other storage locations.
  • Exclusive – in the case of the Exclusive fixed location putaway strategy, it is only attempted, as far as an
    item definition exists for the item to be put away for a fixed location, to put the item away to a fixed location. If it is not possible, for example, due to the maximum inventory level, the put-away will be canceled;  however, if there are no fixed locations in the relevant warehouse zone, the put-away is performed normally to reserve locations.
  Note

  If the warehouse zone includes picking locations next to fixed locations, the picking locations take precedence over the fixed locations.
• Fixed location withdrawal strategy – in this field, you can define how fixed locations are to be taken into consideration for the withdrawal. Possible values are:
  • Not preferred – in the case of the Not preferred fixed location withdrawal strategy, it is not attempted to withdraw first from fixed locations.
  • Preferred – in the case of the Preferred fixed location withdrawal strategy, it is attempted to withdraw first from fixed locations.
  Note

  The preferred consideration of fixed locations leads to breach of the FIFO or LIFO principle if the inventories in a preferred fixed location have a higher FIFO of LIFO date than the inventories in a reserve location.
• Provide picking locations first (checkbox) – this parameter is used to specify whether undersupplied picking locations should be given priority.A picking location is considered undersupplied if the current inventory falls below the minimum inventory level and there is no open receipt quantity for the picking location from a replenishment order. If a picking location is divided into slots, the current inventory in the slot must be less than the minimum inventory level.
  Note

  If necessary, the picking location is supplied several times with the replenishment quantity until the maximum quantity is reached.
• First withdraw the part quantities (checkbox) – you can use this parameter to specify whether partial quantities should be withdrawns as a priority.A partial quantity is present when the current inventory level falls below the maximum inventory level of the storage location. Priority withdrawal of partial quantities is possible in storage locations both with and without storage unit. If a storage location is divided into slots, the current inventory in the slot must be less than the maximum inventory level.
  Note

  Priority withdrawal of partial quantities can lead to a violation of the FIFO or LIFO principle if the partial quantity determined is not the oldest or most recent item inventory in the warehouse zone.
  Note

  If you use the withdrawal strategy Strict FIFO, the setting for partial quantities is not taken into account.
• Time limit for bulk inventory additions – if you have entered the Bulk additions to existing stock put-away strategy, you have to specify a time limit in days for bulk inventory additions in this field. The time limit for bulk inventory additions is reset at the first put-away in an empty storage location and indicates a period in which the storage location is available for further put-aways and is not taken into consideration for withdrawal. Only when one of the following conditions is met, is the storage location no longer used for put-away but only for withdrawal:
  • the storage location is full
  • the time limit fo bulk inventory additions has run out
  • a withdrawal has already taken place at the storage location after the last setting of the time limit for bulk inventory additions, for instance, with a manual inventory posting. However, manual put-aways do not affect the time limit for bulk inventory additions.

  Another put-away is possible only when the storage location is empty again.

  The field Time limit fo bulk inventory additions field is only ready for input if you have selected the Bulk additions to existing stock put-away strategy.

• Inventory owner – specify the priority with which the inventory owner is taken into account when determining inventory recommendations. Select one of the following settings:
  • Accoring to Customizing setting – the priority of the inventory owner depends on the settings in the Customizing application.
  • Accoring to warehouse setting – the priority of the inventory owner depends on the settings for the warehouse.
  • According to item setting – the priority of the inventory owner depends on the settings for the item.
  • Consider at first – the inventory owner is considered first when determining the inventory to withdraw. The age of an item or a characteristic is considered second. The packaging of the item or characteristic is considered last. Use this setting, for example, if you want to use the external inventory of a supplier first.
  • Consider at last – the inventory owner is considered last when determining the inventory to withdraw. The age of an item or characteristic is considered first, the packaging of the item or characteristic second.Use this setting, for example, if you want to use the batches that expire first.
  Note

  The field is only displayed if the main function Multiple inventory owners is activated for the client in the Customizing application.
• Packaging – specify whether and how packaging is taken into account when determining the inventory to be withdrawn. Select one of the following settings:
  • According to item – the consideration of packaging is based on the characteristics for the item.
  • Prefer large packaging – when determining the inventory with withdraw, the inventories are sorted according to size, with the larger packages being removed first.
  • Prefer small packaging – when determining the inventory to withdraw, the inventories are sorted by size and the smaller packaging is removed first. As a result, opened outer packaging and remaining quantities are used up.
  • Do not suggest packaging – packaging information is not taken into account when determining the inventory to withdraw.
  Note

  Loose inventory without packaging is given lower priority than packaging if large or small packaging is preferred.
  Note

  The field is only displayed if the Manage inventory in logistic units parameter is activated under the Inventory management/Warehouse inventory function in the Customizing application.

Determination of the inventory to withdraw

The relevant storage strategy is first determined for each withdrawal operation. On the basis of the withdrawal strategy, which results from various settings in the put-away strategy, the inventories of the requested item (if necessary, taking into account the identification) are put in a sequence. Only storage locations that also have inventory of the requested item are relevant.

The consumption-based process of the relevant storage strategy essentially influences the sequence.

Determination according to the FIFO, None and LIFO consumption-based process

If one of the following consumption-based process is specified in the storage strategy for withdrawal, the other settings will result in corresponding determinations for the inventory to be withdrawn.

• FIFO
• None
• LIFO

Further settings and resulting effects on the determination in the determination sequence

Determination according to the Strict FIFO consumption-based process

If the consumption-based process Strict FIFO is specified in the storage strategy for withdrawal, then the other settings will result in corresponding determinations for the inventory to be withdrawn.

Further settings and resulting effects on the determination in the determination sequence.

Customizing

The following settings in the Inventory management function in the Customizing application are relevant for the Storage strategies application:

• Storage location control – the Storage strategies application is only available if this function is activated
• Storage location control/Warehouse aisles – the Aisle level is only available for the put-away and withdrawal sort order if the Warehouse aisles function is activated
• Multiple inventor owners – the Inventory owner field is only available if this function is activated for the client
• Warehouse inventory/Manage inventory in logistic units – the Packaging field is only available if the Manage inventory in logistics units function is activated

Business entities

The following business entity is relevant for the Storage strategies application that you use, for example, in order to:

• assign authorizations,
• set up activity definitions or
• import or export data.

Storage strategy: com.cisag.app.inventory.obj.StorageAreaStrategy

The business entity is part of the following business entity group:

Storage master data: com.cisag.app.inventory.MasterData

Authorizations

Authorization can be assigned by means of authorization roles as well as by assigning an organization. The authorization concept is described in the technical article Authorizations.

Special capabilities

There are no special capabilities for the Storage strategies application.

Organizational assignments

Organizational structures are used to control which data is visible, usable or editable. To do this, the Content-related authorizations function must be activated in the Customizing application.

For the Storage strategies application to be displayed to a person in the user menu, they must be assigned to an organization that is linked to one of the following organizational structures:

• Inventory management

Special features

There are no special features for the Storage strategies application.

Authorizations for business partners

The Storage strategies application is not released for business partners.