Outbound Process

Stock Removal Strategy

Stock Removal Strategy

Stock removal strategies improve the efficiency of stock removal from storage types by sorting the quantities. They streamline the removal process and enhance inventory accuracy.

 

During the stock removal process, the system determines

  1. The storage type from where stock shall be picked up
  2. The stock removal rule which sorts the quant in the given sorting criteria.

Fig. Stock removal strategy

Stock Removal Rules

It sorts the quants within the storage bin according to the defined criteria such FIFO, LIFO etc. 

 

There are three locations within the settings where the stock removal rule can be defined.

  1. Storage Type (stock removal control parameter section)
  2. Storage Type groups
  3. Determine Storage Type search sequence for stock removal

 

The system first checks the removal rule in the storage type search sequence. If not found, it then checks in the storage type group, and finally in the individual storage type.

 

PS: You can also define your own stock removal strategies by configuring the custom sort fields in either ascending or descending order.

IMG: SCM EWM > EWM > Goods Issue Process > Strategies > Specify Stock Removal Rule

 

Below are a few commonly used strategies

FIFO (First In First Out)

In this strategy, the system sorts the quant according to goods receipt date in ascending order to remove the oldest quant first.

The system automatically set this date during the goods receipt.

WDATU: goods receipt date and time

WDATU_DATE: goods receipt date without time.

QUAN: Available Quantity

Stringent FIFO

Use this rule when you want to apply the FIFO rule across several storage types. Apply the rule by using storage type groups.

 

LIFO (Last In First Out)

In this strategy, the system sorts the quant according to goods receipt date in descending order to remove the oldest quant first.

The system automatically set this date during the goods receipt.

WDATU: goods receipt date and time

WDATU_DATE: goods receipt date without time.

QUAN: Available Quantity

FEFO (First Expire First Out)

The shelf life expiration date is specified as the sort criteria and applied to individual storage types or a storage type group.

Partial Quantity

Determine whether a full pallet (standard quantity) or less is needed.

For full pallets or less than full pallet:

  • Establish quantity classifications for the warehouse to dictate stock removal rules.
  • Specify a packaging specification for the product or employ alternative units of measure.
  • Utilize the packaging specification or the alternative UOM to ascertain the Quantity Classification.

Large Or Small quantities

In this strategy, the system sorts the quant according to available quantity in ascending to revmove small and descending to remove Large quantity from the stock.

QUAN: Available Quantity

Fixed Bin

With the fixed bin strategy, the system uses the storage bins that were assigned to the product master to find stock. However, since a storage type may contain multiple fixed bins, it could be beneficial to pair this strategy with an additional stock removal rule.

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