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242 CHAPTER 7 Inventory and Warehouse Management Processes

Demo 7.5: Review storage bins, and display stock in
storage bins

PROCESSES IN WAREHOUSE MANAGEMENT
Figure 7-18 illustrates steps in the warehouse management process. Typically,
the WM process is associated with a goods movement in another process,
such as procurement, fulfi llment, production, and inventory management.
Recall from our discussion earlier in this chapter that a goods movement
is an IM activity. When a goods movement involves a storage location that is
warehouse managed, however, additional steps are required to transfer the
materials into (putaway) or out of (pick) storage bins in the warehouse.
In most cases, an IM goods movement automatically generates a transfer
requirement. Transfer requirements are used to plan the movement of mate-
rials in and out of a warehouse. The actual execution of the movement is
accomplished via a transfer order. After a transfer order is created, the mate-
rials are physically moved between interim storage areas and the storage
bins, to complete putaway or picking activities. At that point the transfer
order is confi rmed.

Figure 7-18: Warehouse management process

In this section we will consider the steps in the WM process. We will fi rst
discuss these steps in general terms. We will then delve into the details of these
steps as they relate to the procurement, fulfi llment, production, and inventory
management processes. We will assume that all the storage locations involved
in our discussion are warehouse managed.

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