Algorithms and Transaction Types
Warehouse Location Groupings mentions the different routines that the system uses when putting stock away in functional and non-functional areas. These routines are called
algorithms. Each algorithm is a separate program that takes into account particular conditions before attempting to carry out an inventory movement transaction.
Advanced users can set up new types of algorithms to perform special functions; the following set of algorithms is supplied with the system:
• Container move (CM) algorithms find suitable stage, truck, and dock locations, including empty locations, locations with the least goods, and locations that already contain stock designated for a particular ship-to.
• Lane (LA) algorithms find suitable shipping lanes, including empty lanes, lanes with the best load, and lanes for a given carrier.
• Location-find (LF) algorithms are used in functional IRGs to find a location for the inventory without considering capacity.
• Put-away (PA) algorithms are used in non-functional IRGs to find locations in storage areas by considering the size and available space.
• Picking (PK) algorithms are used when picking stock to fill sales orders or work orders.
• Shortage clearance (SC) algorithms are used when receiving stock that is immediately required to fill short orders. The inventory is moved directly from receipt to dispatch, being stored in between. This type of movement is also known as cross-docking.
• Inspection (QA) algorithms are used to determine when an inspection must take place.
The system lets you choose which algorithm to use in any given situation. At the simplest level, you can just assign a particular algorithm to a particular transaction type.
Example: When you receive inventory as a result of a purchase order, the transaction type is RCT-PO. You can define an internal routing for a RCT‑PO transaction that moves it first to the receipt IRG and then to the storage IRG. The first movement uses a location-find algorithm to find a space in the functional receipt area; the second movement uses a put-away algorithm to find suitable locations for the inventory in the non-functional storage area.
In each of these movements, you can select which algorithms you want to assign. In put-away, you can choose different criteria, such as empty locations, or popular locations, or locations where the inventory can be merged with existing stock.
You can assign a sequence of different algorithms for each transaction type. The system tries your first choice algorithm, but if this does not succeed in completing the transaction, the second choice algorithm is applied, and so on until the transaction is complete.
As well as assigning algorithms to each transaction type, you can also specify combinations of site, warehouse, item, supplier, or customer for which a different sequence of algorithms is to be applied. This approach lets you be very specific about exactly how you handle supplies of stock from particular suppliers and how you pick particular inventory for particular customers.
Algorithm assignment setup can be as simple or as complicated as needed.
The most general setup of algorithm is for a generic transaction type RCT-*, which represents all kinds of receipt—such as unplanned, PO, DO, WO—for a given site and warehouse combination, and for a blank item, item type, and address.
On the other hand, you can define a very specific algorithm assignment for a given item for a given transaction type, in a given site/warehouse, and coming from a given supplier or going to a given customer.