Picking Strategies

First in First out (FIFO)

This is more commonly known-removes only oldest quant from the storage type defined in the storage
type search. This is found in manufacturing industries where the material companies wish to sell first is
that which has been stored in WM the longest. Warehouses that have deep racks make it difficult for
wm staffs to get the correct material. One method of ensuring the oldest material is picked is to use
gravity flow racks for materials that are picked individually and not in boxes. The boxes are placed at the
back of the rack, and the flow racks filled so that the picking at the front moves the material forward
from the back. This is important in picking areas.

Last in First Out (LIFO)

it is based on the principle that the last delivery of the material to be received is the first to be used.
LIFO is used by more number of companies for inventory cost accounting. the value of WM stocks
impacts reported gross profits margins. Investors ten to carefully review gross profit margins, which are
often considered a measure of the value provided to consumers. LIFO can give a more accurate
valuation of warehouse stock. Retailers Walgreens and kohl’s use LIFO picking. When LIFO picking occurs
no value change occurs for the older material when new materials are received. Because LIFO method is
in effect, the older material is not affected by the potential higher prices of the new

materials. if the older material is not affected that means it is not evaluated at the new price. if the older
material value is not increased, this prevents false valuation of current inventory. It may be used for
financial department wishes to report inventory using LIFO because it gives a more conservative view of
the cost of inventory and therefore will be seen in a positive light by some financial analyst.

Fixed storage Bin

Relies on the data that has been entered into the material master record for the material to be picked.
Fixed storage bin I entered into the material master in WM screen view.

Shelf Life Expiration Date (SLED)

In many industries especially retail and grocery the SLED of materials is very important characteristics.
this can be sales focused shelf life, where the material can only sit on a sore shelf until its sell-by date.
Alternatively, it can be production focused, as when chemicals and raw materials can be kept only for so
long and sill meets tolerance limits for use in the production process. it is important to scrap the out of
dated materials in the warehouse. Under this strategy, the materials are picked based on the shelf life of
the QuantS of material IN WAREHOUSE.
Partial Quantities

This can be required if the Warehouse manager does not want to pick all the contents of a storage unit
and then have to return some of the storage bin. A Partial quantity allows the staff to remove some of
the contents of a storage unit. Warehouse staff can often try to reduce the number of storage units with
partial quantities, and the partial quantities picking strategy can be an appropriate way to accomplish
this.

Quantity Relevant

This strategy is less frequently used but it is useful for companies whose warehouse store the same
material in varying sizes of bins and storage types. We find this scenario often in older warehouse
buildings. Quantity relevant picking is based on the quantity required in the transfer order and whether
that quantity is defined as large or small. A warehouse may have storage type where small quantities of
material are stored and also have storage types where large quantities are stored.
PUTAWAY STRATEGIES

Fixed Bin Storage

This can be taken into account the data that has been mentioned in the material maser record for the
material to be placed in Warehouse. The material is stored in a single bin.i.e fixed bin. The data
regarding this bin and the parameters of the bin are found in the materials master record of the
material. The storage bin is entered into the material master and does not change unless the material

master record is changed.

Open Storage

this applied to materials are stored in areas of the open floor, where there are no racks or lines. The
storage type is divided into sections and the protocol is that one storage section is represented by one
storage bin.

Next Empty Bin

Some warehouses are structured so that material can be stored in any bin within the storage type. This
structure can result from the nature of the material stored in the warehouse: e.g., it maybe different
materials all stored in the same size container. If this is the case, the putaway strategy can be configured
so that the system will select the next empty bin. In manufacturing industries that produce electronic
components, the parts are often small, delicate and liable to damage by static. These components are
stored in containers in the warehouse that are safe for all products. Many warehouse store these
products use carousel system that places new items in the next empty bin available.

Bulk Storage

It is for material that is stored in large quantities. This is not to be confused with material that can be
stored in bulk containers, such as grain, sand, cement, fertilizer companies. In the beverage industry, a
production runoff a beer may produce several thousands of cans of product. Once this is placed in packs
and then stored on pallets, It will be stored in bulk storage type.

Near Picking Bin

This strategy is used for material that is being frequently picked because It is appropriate to store the
material close to the picking areas. The warehouse can use this strategy to see that the material can be
placed in the fixed bin. If not, the system will try a reserve area, and finally try to find a bin that is
closest, using configured search.

++++++++++++++++++++++++++++++
1.   LB01  -  Create Transfer Requirement 
2.   LB02  -  Change transfer requirement 
3.   LB03  -  Display Transfer Requirement 
4.   LB10  -  TRs for Storage Type 
5.   LB11  -  TRs for Material 
6.   LB12  -  TRs and Posting Change for MLEat.Doc. 
7.   LB13  -  TRs for Requirement 
8.   LD10  -  Clear decentralized inventory difference
9.   LD11  -  Clear differences for decentral.sys. 
10.  LI01  -  Create System Inventory Record 
11.  LI02  -  Change System Inventory Record
12.  LI03  -  Display System Inventory Record 
13.  LI04  -  Print System Inventory Record 
14.  LI05  -  Inventory History for Storage Bin
15.  LI06  -  Block Storage types for annual invent. 
16.  LI11  -  Enter Inventory Count 
17.  LI12  -  Change inventory count 
18.  LI13  -  Display Inventory Count 
19.  LI14  -  Start Inventory Recount 
20.  LI20  -  Clear Inventory Differences WM 
21.  LI21  -  Clear Inventory Differences in MM-IM 
22.  LL01  -  Warehouse Activity Monitor 
23.  LLVS  -  WM Menu 
24.  LN01  -  Number Ranges for Transfer Requirement 
25.  LN02  -  Number Ranges for Transfer Orders 
26.  LN03  -  Number Ranges for Quants 
27.  LN04  -  Number Ranges for Posting Changes
28.  LN05  -  Number Ranges for Inventory
29.  LN06  -  Number Ranges for Reference Number
30.  LN08  -  Number Range Maintenance: LVS_LENUM 
31.  LP10  -  Direct picking for PO 
32.  LP11  -  WM staging of crate parts WM?
33.  LP12  -  Staging release order parts (WM-PP) 
34.  LP21  -  WM replenishment for fixed bins WM 
35.  LP22  -  Replenishment Planning for Fixed Bins 
36.  LQ01  -  Transfer Posting in Invent. Mgmt 
37.  LQ02  -  Transfer Posting in Invent. Mgmt 
38.  LS01  -  Create Warehouse Master Record 
       LS01N - Create Storage Bins
39.  LS02  -  Change Warehouse Master Record
40.  LS03  -  Display Warehouse Master Record 
41.  LS04  -  Display Empty Storage Bins 
42.  LS05  -  Generate Storage Bins 
43.  LS06 -   Block Storage Bins 
44.  LS07  -  Block Quants 
45.  LS08  -  Block Storage Bins per Aisle 
46.  LS09  -  Display Material Data for Storage Type 
47.  LS11  -  Change storage bins (multiple proc.) 
48.  LS12  -  Block Storage type 
49.  LS22  -  Change Quants
50.  LS23  -  Display Quants 
51.  LS24  -  Display Quants for Material 
52.  LS25  -  Display Quants per Storage Bin 
53.  LS26  -  Stock of Material 
54.  LS27  -  Display Quants for storage unit 
55.  LS28  -  Display storage units / bin 
56.  LS32  -  Change storage unit 
57.  LS33  -  Display storage unit 
58.  LS41  -  List of control cycles for WIP loc
59.  LT01  -  Create Transfer Order 
60.  LT02  -  Create TO for Inventory Difference
61.  LT03  -  Create TO from Delivery Note
62.  LT04  -  Create TO from TR
63.  LT05  -  Process Posting Change Notice 
64.  LT06  -  Create TO for Material Document 
65.  LT07  -  Create TO for mixed storage unit 
66.  LT08  -  Manual addition to storage unit 
67.  LT09  -  ID point function for storage units 
68.  LT0A  -  Pre-plan storage units 
69.  LT0B  -  Stock Placement of Shipping Units 
70.  LT0C  -  Stock Removal of Shipping Units 
71.  LT0D  -  Stock Transfer of Shipping Units
72.  LT0E  -  Create Removal TO for 2-Step Picking 
73.  LT10  -  Create Transfer Order from List 
74.  LT11  -  Confirm Transfer Order Item 
75.  LT12  -  Confirm Transfer Order 
76.  LT13  -  Confirm TO for storage unit 
77.  LT14  -  Confirm preplanned TO item 
78.  LT15  -  Canceling transfer order
79.  LT16  -  Canceling TO for storage unit
80.  LT17  -  Single Entry of Actual Data 
81.  LT1A  -  Change Transfer Order
82.  LT21  -  Display Transfer Order 
83.  LT22  -  Display Transfer Order / Storage Type 
84.  LT23  -  Display Transfer Orders by Numbers
85.  LT24  -  Display Transfer Order / Material 
86.  LT25  -  Display Transfer Order / Reference 
87.  LT26  -  Transfer orders for storage bin 
88.  LT27  -  Transfer order for storage unit 
89.  LT28  -  Display Transfer Order / Reference 
90.  LT31  -  Print TO Manually
91.  LT32  -  Print transfer order for storageunit
92.  LT41  -  Prepare TRs for Multiple Processing
93.  LT42  -  Create TOs by Multiple Processing
94.  LT43  -  Forming groups for deliveries
95.  LT44  -  Release for Multiple Processing 
96.  LT45  -  Evaluation of reference numbers 
97.  LT51  -  Maintain Missing Stock 
98.  LT63  -  Control: Single Entry of Actual Data 
99.  LT64  -  Single Entry of Actual Data 
100. LT72  -  Determine 2-step relevance 
101. LT73  -  Display 2-step 
102. LU01  -  Create Posting Change Notice 
103. LU02  -  Change Posting Change Notice 
104. LU03  -  Display Posting Change Notice 
105. LU04  -  Selection of Posting Change Notices 
106. LX01  -  List of Empty Storage Bins 
107. LX02  -  Inventory List 
108. LX03  -  Bin Status Report 
109. LX04  -  Capacity Used 
110. LX05  -  Block Bins in Bl.Storage w .Time Limt
111. LX06  -  Inventory List for Fire Department
112. LX07  -  Check storage 
113. LX08  -  Accident Regulations List
114. LX09  -  Overview of All Transfer Requirements
115. LX10  -  Activities per Storage Type 
116. LX11  -  Overview of Documents
117. LX12  -  Document Overview: Landscape Format 
118. LX13  -  Analysis of Differences 
119. LX14  -  Analysis of Material Transfers 
120. LX15  -  Selection of Bins for Annual Inventory
121. LX16  -  Selection of Bins for Continuous Inventory
122. LX17  -  List of Inventory Differences 
123. LX18  -  Statistics of Inventory Differences 
124. LX19  -  Inventory Data Takeover by Batch Inp. 
125. LX20  -  Generate interim storage bins 
126. LX21  -  Pick List for Several Transfer Order 
127. LX22  -  Process Inventory from Overview 
128. LX23  -  Stock comparison IM - WM 
129. LX24  -  Display of Hazardous Material numbers 
130. LX25  -  Inventory Status 
131. LX26  -  Inventory in WM via cycle counting 
132. LX27  -  Stock levels by shelf life expiry date 
133. LX28  -  Relevant TO item for ext.system 
134. LX29  -  Fixed bin supervision 
135. LX30  -  Overview of WM messages ext.system 
136. LX31  -  Analysis of print control tables 
137. LX32  -  Archived transfer orders 
138. LX33  -  Archived transfer requirements 
139. LX34  -  Archived posting change notices 
140. LX35  -  Archived system inventory records 
141. LX36  -  Archived inventory histories 
142. LX37  -  Linked objects 
143. LX38  -  Check Report Customizing Strategy K 
144. LX39  -  Evaluation Reference No. for 2-S.Pck 
145. LX40  -  Material Situation Prod. Storage Bin 
146. LX41  -  Bin Status Report WM/PP Interface 
147. LX42  -  Evaluation PP Order from WM View
148. LX43  -  Consistency Check for Control Cycles MCL9 
                      WM: Material Plcmt/Removal:Selection
149. MCLD  -  WM: Material flow - Selection 
150. MCLH  -  WM: Movement types - selection  - 
151. OL01  -  Display / change LDK34 (bins)
152. OL02  -  Display / change RLPLA (bins)
153. OL03  -  Display / change LDK33 (stock) 
154. OL04  -  Display / change RLBES (stock) 
155. OL05  -  Display / change LDK30 (mat.whse) 
156. OL06  -  Display / change LDK31 (mat.type) 
157. OL07  -  Data transfer stor.bins LDK34->RLPLA
158. OL08  -  Data transfer stor.bins RLPLA->B.I.
159. OL09  -  Data transfer stor.bins LDK34->LAGP 
160. OL10  -  Test storage bin data transfer 
161. OL11  -  Data transfer stock LDK33->RLBES 
162. OL12  -  Data transfer stock RLBES-> B.I. 
163. OL13  -  Data transfer stock LDK33->LQUA 
164. OL14  -  Test stock data transfer 
165. OL15  -  Data transfer material whse no.view
166. OL16  -  Test mat.master data transfer (MLGN) 
167. OL17  -  Data transfer material storage type
168. OL18  -  Test mat.master data transfer (MLGT)
169. OLVS  -  SD Menu for Master Data 
170. VM01  -  Create Hazardous Material 
171. VM02  -  Change Hazardous Material 
172. VM03  -  Display Hazardous Material

LT21 Display Transfer Order

LT22 Display Transfer Order / Storage Type
LT23 Display Transfer Orders by Numbers
LT24 Display Transfer Order / Material
LT25 Display Transfer Order / Reference
LT26 Transfer orders for storage bin
LT27 Transfer order for storage unit
LX01 List of Empty Storage Bins
LX02 Inventory List
LX03 Bin Status Report

LX23 Stock comparison IM � WM

LS23 Display Quants

LS24 Display Quants for Material
LS25 Display Quants per Storage Bin
LS26 Stock of Material
LS27 Display Quants for storage unit
LS28 Display storage units / bin