Page 271 -

Processes in Warehouse Management 253

Demo 7.7: Fulfi llment process with warehouse
movements

WAREHOUSE MANAGEMENT IN PRODUCTION
The production process triggers the warehouse management process in two
places, as indicated in Figure 7-31. Recall from Chapter 6 that production
involves both a goods issue (when raw materials and semifi nished goods are
issued to the production order) and a goods receipt (when fi nished goods
are placed into storage). Figure 7-31 assumes that these materials are issued
from and received into a warehouse-managed storage location. The production
order generates a transfer requirement for the materials that are needed for
production. In response, a TO is created, the materials are moved into an
interim storage area, and the TO is confi rmed. The accompanying goods issue
has all the fi nancial and material outcomes that we discussed in Chapter 6.

Figure 7-31: IM and WM steps in production

After the production process is completed and confi rmed, the fi nished
goods are received into storage. At this point the WM process steps are similar
to those that occur within the procurement process. A goods receipt is recorded,
as explained in Chapter 6. However, the materials are physically placed in an
interim storage area, and a transfer requirement is automatically created by
the system. A transfer order is then created, the materials are moved from
the interim storage area into bins, and the TO is confi rmed. Meanwhile, the

31/01/11 6:41 AM
CH007.indd 253 31/01/11 6:41 AM
CH007.indd 253