Demand stock replenishment by slotting

Have you heard about the concept of slotting? Do you know how to apply it to your DYN365FO implementations?

In this post we will review the concept of Slotting within the warehouses and we will create the templates for the use of this powerful tool to our benefit.

The concept of slotting within storage is understood as a methodology that allows us to use criteria to strategically locate products within the warehouse, considering the characteristics of the products and the needs of our space.

This way of working will help us to increase the efficiency of warehouse processes, redistributing and optimizing the use of workers in order to reduce time, use space efficiently and, consequently, reduce the costs of our operation.

How does this apply to 365FO?

Within Dynamics we can activate two features that go hand in hand with replenishment by Slotting.

Warehouse assignment function: Slotting functionality enables us to intelligently plan picking locations before releasing orders to the warehouse and creating jobs.

Warehouse slotting for transfer orders: Uses the same concept as the previous feature, but for transfer orders.

Warehouse slotting improvements: Refers to an update on the allocation of locations that considers the available stock and performs less replenishment work.

We will activate the three characteristics and we will explain an example as it applies in each case.

Setting up the example.

We are going to get to work and configure a scenario for the use of this functionality.

For this case, we will create a simple example where the demand is generated taking into account the existing stock to, once the need is identified, replenish and release the inventory to meet the initial requirement.

To do this we must follow these 4 configuration steps. (As an example, we will use the data of the USMF company):

1. Slotting unit of measure levels

2. Directive Codes

3. Slot Templates

4. location directives

1. Create unit of measure levels.

From the Warehouse management > Setup > Replenishment > Slotting unit of measure levels menu we will create the different levels

This parameterization will allow us to group several units of measures we will process in the replenishment.

Similar to the Unit Sequence Group found in released products, we will load slot levels:

As we see in the image we are allowing any unit of measure to be used, be it Units, Boxes or Pallets.

This will be useful if it were the case that when replenishing we can do it to different sizes of boxes of the same product.

2. Directive code.

Then we create our directive code that we will use to associate to our location directives and work template:

3. Creation of slotting template

The slotting template works similarly to the drop location directive. In this case we will be able to not only assign zone and profile locations, but also determine what happens at the time of replenishment with these picking locations.

Going to the route: Warehouse management > Setup > Replenishment > Slotting templates we will load this part of the setup:

Lets review some of the fields:

Type of demand: We will define if the template refers to a sales order or a transfer order

Demand Strategy: It gives us three options

Order : The total quantity of the order is considered as demand.

Reserved : Only the reserved part of the order is considered as demand.

Released : Only the quantity released is considered demand.

For this example we are going to request the entire amount of the order

Allow wave demand to use unreserved quantities: This parameter includes demand for waves that have replenishment.

Unit of measurement level: We load what we created in point 1. Thus, when generating the demand from the "locate demand" button, it will only use the units within the level.

Assign slot criteria: It also gives three options:

Assume Empty : Assume that the locations are empty. So it will always replenish for the amount requested

Consider quantity – checks the bins in the picking area and does not skip those that are empty

Consider available : Validates that in the destination locations there are unreserved quantities for the requested item. In the event that they exist, and they satisfy at least 1 unit of the demanded line, then the replenishment will be reduced by that amount.

For example, if I demand 10 boxes, and the destination location has 1 box, the localized demand will be 9 boxes. On the other hand, if the demand is for 10 boxes and there is only 1 unit, the localized demand will be 10 boxes.

In our example, we will consider quantity.

Directive code: We assign our Slotting directive code

Overflow location: In the event that all our pick locations are busy, this location works to place the replenishment and not cancel the job.

Allow Interrupt: When enabled, if demand at the destination location cannot be met, it creates a job to move inventory from the destination location to other destination locations, and then reworks the job ignoring the inventory. In this way we release the destination location through movement.

Use fixed locations: This function allows us to define whether or not to use fixed locations.

In our example, we generate two lines, one using only fixed locations and the second pointing to the rest of the picking locations.

To do this, by selecting the second line, from the Edit Query option, we point to the picking locations:

To recap:

We created a slotting template to cover the demand of the Transfer Orders that are generated in the warehouse 61 .

In it we generate a line to replenish only the fixed locations through units, boxes and pallets .

Additionally, we load a second line that it will assume in case it cannot replenish with the first one, with the same configuration, but, using the picking locations since we filter through "Edit query".

4. Location directives

We must load at least one directive to support slotting selections. From the Warehouse management > setup > Location directives route, we will load a new one of the Replenishment type:

We will instruct you to make the selection for warehouse 61 and in the "edit query" option of the location directive actions, we will indicate the warehouse locations.

In this example, we create the setup for transfer orders. But in the case that it is necessary to generate for sales orders, a slotting template is simply created, of the type "Sales order"

Process.

Moving on to the process and as an example we are going to load two sales orders and generate our replenishment based on this demand.

From the Inventory management > Entry orders > Transfer orders path, we will create the following orders:

The first with a single line of 1 unit for the T0100 product.

The second with two lines 20 units for product L0101 and 8 units for product T0100

With these two orders we will generate our demand. To do this, we go back to the path of the slotting templates: Warehouse management > Configure > Replenishment > Slotting templates.

From the "Generate Demand" button, we will trigger our demand on this slotting template

From the "Slotting demand" button we can consult the generated demand:

As we can see, the result is generating a demand for 1 full Pallet (20 u) for item L0101 and 9 units for item T0100

Everything corresponds to the sum of the quantities of the orders.

If necessary, we can edit this amount and send more or fewer units to replenish.

Then we click on the "Locate demand" button.

This action generates the slotting plan that we will need to obtain as a result to supply the demand that we have initially generated.

To consult the plan, we enter the "Assign plan" option. This query allows the warehouse controller to verify if the demand plan made complies with the times and the supply load of, for example, the day.

Once reviewed and validated, the replenishment can be released to the warehouse and the necessary jobs created.

By pressing the "Execute Replenishment" button we will create the jobs.

TIPS AND TRICKS!

1. A good alternative to avoid having to carry out the processing manually, schedule the execution to be carried out automatically.

From the Warehouse management > Replenishment > Run Slotting path:

Within the parameters, we can complete the criteria with which we are going to execute. Such as, the number of processes to consider, if we only generate the demand, locate it, create the work or do all three steps at the same time.

We can also determine the periodicity to make the execution daily.

With this function we ensure automatic execution, without modifying dates.

This is great functionality for the warehouse controller to review and create replenishment jobs on a day-to-day basis.

Adding this to the existing wave replenishment functionality, we will allow the warehouse controller to validate the demand, before generating the replenishment.