BWU Fall Workshop 2003

Warehousing
Presented by
Debra Beard
OneNeck IT Services, Corp.
Warehousing Overview

Sales Purchasing Manufacturing

Warehousing
• Transfers
• Adjustments
• Cycle Counts
Warehouse Modules
Master Data

Master Data definitions like : Warehouses, Zones, Locations, Storage Conditions, Packaging, Warehouse Item Data etc

Inventory Inventory Inventory Inventory Lot Control

Planning Handling Reporting Analysis

- Definition of - Inventory Position

- Planned warehouse order - Lot Maintenance
Inventory types - Consignment - Inventory Valuation
Transactions Reporting - Lot Features
- Inbound Process - Forecasting
- Inventory - Outbound Process - Project Inventory - Lot Tracking
- Order Advise (SIC)
Commitments
- Cycle Counting - Inventory
transaction history
- Inv. Adjustments
- Blockings
Master Data – Warehouse, Zones, Locations
Master Data – Warehouse Types
Normal : Warehouse used to store goods.
Service : Service warehouse is a specific warehouse like a service car or
service kit, where goods are stored for maintenance purposes
at the customer’s site. Inventory present in this warehouse can
not be used for other purposes.
Work-In-Process : Warehouse used to store intermediate inventory used to supply (WIP)
production lines or work centers. This type of warehouse can
not have locations and should be nettable.
Consignment :Warehouse, which can only be used for consigned inventory,
(Not owned) which is not owned by you, but by the supplier (ship-from
business partner). The warehouse can be used for one business
partner only or for multiple business partners. Consignment
usage is tracked and used for invoicing.
Consignment :Virtual warehouse, which is used for the administration of inventory
(Owned) owned by you, but stored at the customer’s site (ship-to business
partner). This inventory is assigned to that specific business partner
and can not be used for other purposes.
Master Data – Warehouse Info
Nettable Warehouse
The MRP and MPS algorithm in Constraint Planning (CP) ignores the inventory in non-nettable
warehouses. The supply of such warehouses (non-nettable) is planned with DRP.

In addition, direct purchases can be written to non-nettable warehouses or they can be stocked via the
SIC principal. The DRP algorithm ignores nettable warehouses. The replenishment of the inventory of
these warehouses is planned using MRP, MPS and SIC.
An exception is a "nettable" WIP warehouse; it can also be supplied by DRP.

Relation: Project or Business Partner

In case the warehouse is of type Project you can define that the warehouse can only be used by one
specific project, by filling the project code or by several projects by leaving the project code empty
(Consignment (Not owned) identical). In case the warehouse is of type Consignment (Owned) you need to
fill in a specific ship-to business partner, because the inventory can only belong to one specific customer.

Locations
A warehouse can have locations or not, even when a warehouse has locations it is still possible to define
the item as not location-controlled. Defining a warehouse as location-controlled should be done by in a
separate session Activate Location System for Warehouse (whwmd3203m000). Accessible via application
menu Warehouses (whwmd2500m000).
Master Data - Info
Zones
Definition : A zone is a part of warehouse consisting of one or more locations were goods could be
stored.

Purpose : By grouping locations together it is easier to store and pick goods and you have the possibility
to block a whole zone. Defining zones is optional.

Blockings
It is possible to block a complete zone for inbound, outbound, transshipment (in), transshipment (out)
and assembly movements. Blocked for all transactions is updated from the session whinh6110m000
Blockings by Zone/Warehouse/Location.
 Master Data - Info
Locations
Definition: Specific areas of a warehouse were goods are stored in order to control the inventory
better.
Important fields:
- Location type:
- Pick : Pick locations are the locations were goods are picked from during the outbound
process depending on the packaging.

- Bulk : Bulk locations are locations that store goods in mainly large quantities. The pick
locations can be replenished from bulk locations, defined in the Replenishment
Location Matrix (whwmd3504m000). Also goods can be picked from bulk
locations during the outbound process depending on the packaging.

- Receiving: Receiving Locations are locations used to temporary store the received goods
before putting them away.

- Inspection: Inspection Locations are special locations used for specific operations like
quality control.

- Staging : A staging location is the last location before a shipment. The goods are picked
and put on the staging location before loading a truck. They allow performing
extra operations when shipping goods, like packaging, labeling, etc.

Zone :The code of the zone where the location belongs to.
Inventory Planning
Sessions that display planned inventory.
Planned transactions by Item.
Planned transactions by Order.
Inventory commitments.
Generate / Maintain inventory
commitments (Baan IV - Hard allocations).
Possible to commit inventory to a buffer.
Consumption against sales/warehouse
orders at a later time.
Inventory Planning
Planned Inventory transactions are used for
Calculating the economic stock
Statistical inventory control
Time phased order point
Generating IRP order
Generating PRP orders
Generating DRP orders (transfer)
Planned Inventory Transactions can be generated by
Warehouse Orders
PRP Warehouse Orders
Purchase Orders / Contracts / Schedules
Sales Orders / Contracts / Schedules
Sales Quotations
Request for Quotations
Production Orders
Service Orders
Planned Inventory Transaction Update
• Planned inventory transactions created by other packages and modules cause
warehouse orders to be generated.

• Manually created warehouse orders cause planned inventory transactions to be

generated.

• When a warehouse order has been completed or cancelled, the planned inventory
transaction is removed.

• As the open or incomplete quantity on a warehouse order changes as the order

is processed, the quantity on the planned inventory transaction will be
updated with the change.

• If the date of the warehouse order changes, the date of the planned inventory
transaction will be changed.
Inventory Handling
Types of warehousing procedures
Receipt Procedure
Inspection Procedure
Outbound Procedure
Shipment Procedure
Definition of activities by procedure
Activities for Receipt procedure (Example)
whinh3412m000 Print Goods Receive Note (o)
whinh3520m000 Receipts (m)
whinh3201m000 Generate Inbound Advice (m)
whinh3415m000 Print Storage List (o)
whinh2515m100 Confirm Storage List (o)
whinh3203m000 Put Away Inbound
Activities for Outbound procedure (Example)
whinh4201m000 Generate Outbound Advise(m)
whinh4202m000 Release Outbound Advice (m)
whinh4415m000 Print Picking List (o)
whinh2525m100 Confirm Picking List (o)
whinh3522m000 Approvals (o)
Definition of warehouse order types
Inventory Handling
Warehouse Order Types
Now we know more about the procedures and activities. We distinguish 4 types of
orders: Receipt, Issue, Transfer and Item transfer.

• For a Receipt you have to fill a receipt procedure and an inbound procedure.

• For an Issue you have to fill an outbound procedure and a shipment procedure.

• For a Transfer and Item Transfer you have to fill all 4 procedures.

An order type will always be linked to a warehousing order, and then the warehousing
order will follow all the activities which are linked to the procedures.

Sales orders and Purchase orders are linked to warehouse orders.

While defining sales/purchase orders, associated warehouse order
can be linked OR default warehouse order type can be used.
Inventory Handling – Order Type Linkage
Sales Orders
Purchase Order Types
Types
1. Print acknowledgement
1. Print purchase order
2. Release to warehousing
2. Release to warehousing

Warehouse Orders Types

3. Print goods received note 3. Maintain outbound
4. Generate/Maintain inbound 4. Release outbound
5. Put-away inbound 5. Generate/Confirm Picking List
6. Confirm Shipment

6. Process Delivered PO 7. Release to Invoicing

Central Invoicing
8. Compose / Print / Post Invoice

9. Process
Delivered SO
Consignment Inventory Handling

Not Owned
Owned

Vendors inventory at our site

Inventory at customer sites

• Consignment warehouses
• Consignment Order types
• Purchase
• Consignment Replenishment
•Consignment Payment
• Sales
•Consignment Replenishment
•Consignment Invoicing
Consignment Owned

Owned

Inventory at customer sites

Consignment Owned Procedure

Step 1
1. Create SO of type consignment replenishment
2. System creates a warehouse order of type sales transfer
3. Generate outbound (followed by rest of the steps for
warehouse transfer)
Step 2 : Customer notifies consumption
• Create SO of type CNI
• Follow thru with the delivery of the sales order through
warehousing.
Consignment Not Owned
Not Owned

Vendors inventory at our site

Consignment NOT Owned Procedure

Step 1
1. Create PO of type consignment replenishment
2. Print PO , Release to warehousing.
3. Follow-thru the receiving steps and put-away.
Step 2 : Consumption of inventory
• Inventory transfer to consumption warehouse
from consignment warehouse , system
generates a PO of type consignment payment.
• Follow thru with the processing of system
created PO for payments to be made to vendor.
Inventory Reporting
All inventory related reporting sessions are in this module
Warehouse Inventory by Item
Item Inventory by Warehouse
Warehouse Inventory by Item, Company and Warehouse

Inventory by Warehouse, Item and Lot

Inventory by Warehouse/Location/Item
Inventory by Item/Warehouse/Location/Lot
Inventory by Warehouse/Item/Lot/Location
Inventory by Item and Inventory Date
Inventory Structure

Lots by Warehouse

Project Inventory
Project Inventory by Item

History transaction display/reports

Inventory Analysis
Valuation.
Valuation methods:
FTP: Fixed Transfer Price
FIFO: First-In, First-Out
FIFO: Last-In, First-Out
MAUC: Moving Average Unit Cost
LOT: Lot Specific valuation

Valuation methods can be defined by financial-company/item-group. For each

combination of financial-company/item-group 2 valuation methods can be defined:

1. The valuation method for items that are lot-controlled and for which lot-prices are
registered.
In this case the user can choose between FTP, FIFO, LIFO, MAUC and LOT.
2. The valuation method for items for which lot-prices are not registered. In this case
the user
can choose between FTP, FIFO, LIFO and MAUC.
Inventory Analysis
Forecast.
Following types:
Moving Average.
For this type the number of periods for Moving Average has to be
defined.
Exponential Smoothing.
F(n+1) = F(n) +a*(I(n) - F(n)),
For which n - period number (F – forecast, I – issue, a - smoothing
factor).
Previous Year Calculation.
Number of Periods backward and forward in Previous Year have to be
defined.
Last Period Demand.
Minimal number of periods of History Demand will be defined for all
types of Forecast Methods.
Inventory Analysis – Order Advice
Planned Production / Purchase orders for SIC
controlled items can be generated using Order
Advice sessions.
System will advise production or purchase order
depending on item being manufactured or
purchased
These planned orders can then be reviewed and
transferred to appropriate Baan module for
execution
ABC Analysis
The purpose for Performing ABC Analysis is classifying the items based on the issues by warehouse.
The classification is based on the turnover, which can be determined based on:
· Cost price
· Sales price
· Quantity
The program calculates the sum of the actual issues for a specified number of periods.
For each item and for all selected items in total the turnover will be calculated.

Based on the ABC boundaries specified in the INA parameters, the items will be classified as A, B or C
items.
Example:
BoundariesA: 70, B: 20, C: 10
Items X1 X2 X3 X4 X5
Turnover 10 20 30 40 50

When we sort on turnover descending and cumulate the turnover we will get the following
Figures:
X5 X4 X3 X2 X1
Turnover 50 40 30 20 10
Cumulated 50 90 120 140 150
Cum. % 33.33 60.00 80.00 93.33 100.00

So based on these figures the following classifications will be assigned:

X5 X4 X3 X2 X1
A A B C C
Receipt Procedure
Inspection Procedure
Outbound Procedure
Shipment Procedure
Shipment
Print Sales Order Acknowledgement
Release to Warehousing
Maintain/Generate Outbound
Release Outbound
Generate Picking List
Picking List (confirm)
Confirm Shipment
Release to Invoicing
Processed Delivered Sales Orders
Receipts (No Inspection)
Print Purchase Order
Release to Warehousing
Print Goods Received Note
Receipts
Generate Inbound
Put-Away Inbound
Print Return Notes (In case of QC Rejections)
Print Claims (if receipt qty ? supplier packing
slip qty)
Processed Delivered Purchase Orders
Receipts (Inspection)
Print Purchase Order
Release to Warehousing
Print Goods Received Note
Receipts
Generate Inbound
Put-away Inbound (receipt loc to inspection loc)
Approval (QC)
Generate Inbound
Put-away Inbound (inspection loc to normal loc)
Print Return Notes (in case of QC rejections)
Print Claims (if receipt qty ? PS qty)
Processed Delivered Purchase Orders
Questions?

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