SAP EWM: Optimizing The Stock Management In the Warehouse.

Optimizing the Stock management in the Warehouse using the removal strategy Partial Quantities First.

With the partial quantities first strategy, the system takes a full handling unit or tries to remove stock in partial handling units first, depending on the required quantity, therefore optimizing the stock management in the warehouse. With this strategy, the number of partial handling units in a storage type is kept to a minimum.

To implement this strategy, below are the prerequisite configuration and master data settings.

Define Quantity Classifications

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Define Unit of Measure Attributes

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Specify Stock Removal Rules

We need to define a stock removal rule with ascending quantity (piece/EA) and a stock removal rule with descending quantity (standard HU).

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Stock removal rule FPIC corresponds to standard HU i.e. full case pick. In this, we need to select QUAN as descending.

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Stock removal rule LPIC corresponds to lost pick. In this, we need to select QUAN as ascending.

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Determine Storage Type Search Sequence for Stock Removal

In this config, using Quantity classification we can do the determination of the stock removal group.

If the requested quantity is for a full pallet, then the rule FPIC should be selected. If the requested quantity is for loose pick i.e. qty less than standard HU then the removal rule LPIC will be determined.

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Packaging specification ā€“ in packaging specification we need to make sure that the condition for WT creation is maintained.

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Also, we need to make sure that, quantity classification is maintained as ā€œPā€.

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Optimizing Stock Management In the Warehouse Process Flow

Example demonstrating the above configuration – Please note that in this example, stock removal is happening from the same source storage type.

Let us stay for an example with the standard quantity of 05 pieces. Below is the stock situation for product 100526. We can see those four full case pallets (80000000300, 80000000301, 80000000302 and 80000000310) are available in the stock.

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First delivery 80003165 with qty as 5 created. For this, the system determines the quantity with the oldest goods receipt date and eventually HU 80000000300 got picked.

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For the next pick, we need only 03 pieces. As we only have full pallets, the system uses the oldest quant and it takes 03 pieces from that pallet.

Delivery 80003166 with qty as 3 created. For this, the system determines the quantity with the oldest goods receipt date and eventually HU 80000000301 got picked and will be used for partial picking.

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Next, we need 05 pieces again. From the complete pallets again the one with the oldest goods receipt date is taken. Still one opened pallet with 02 pieces exists.

Delivery 80003167 was created for 5 pieces, now since this is a full pick quantity so system will determine the full HU 80000000302 and it will not remove the partially available qty in HU 80000000301.

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Then finally, we need to pick 04 pieces. First, the opened pallet (02 pieces) is used, then from the oldest full pallet, 02 pieces are used.

Delivery 80003168 is created with 04 pieces. Now since this requested qty is less than the full case qty so system will first consume the partial qty available in HU 80000000301 and the remaining quantity it will consume from 80000000310.

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Assuming we did not have this stock removal strategy then for the above delivery, the system would have picked up the entire 04 pieces from HU 80000000310 and eventually, this would have left two 80000000310 and 80000000301) in open condition.

By implementing the partial quantities first strategy, optimizing stock management in the warehouse task can be easy. This approach allows the system to prioritize full handling units or remove stock from partial handling units based on the required quantity. The result is a more efficient and streamlined operation. To delve deeper into this topic, our above guidance on SAP EWM: Optimizing Stock Management In the Warehouse offers valuable information. If you’re eager to enhance your knowledge of SAP EWM, we invite you to enroll in our SAP courses in Bangalore and Pune. Get ready to expand your skillset and excel in the world of SAP!

Blog by: Amith Kumar

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