Picking and Put away Strategies used in Warehouses

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.

picking and 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.