Understanding Stock and Location Relationships

Overview

TOT has two main ways of accounting for stock

It is important to understand these and how each is employed when considering how the production process works

By Individual SKU

Under this model, SKU’s are accounted for whenever they

These movements (aka transactions) for a SKU are processed against a Stock location - that is the physical storage bay that the SKU is placed in / removed from.

Note that TOT uses a random stock holding methodology, so a single SKU will often have balances in multiple stock locations

Given this, to ascertain the total balance for a single SKU, the balance of the SKU per stock location is aggregated to form a total known as the Warehouse Location balance

 

By Grouped Set of SKUs

Under this concept, a group of SKU's are homogenised and treated on a grouped basis. As the homogenised group of SKUs moves between locations, it is accounted for as a single unit not as its constituent SKUs

This concept can be better understand through the following examples

 

Example

Details

Purchase Order

These are incoming boxes that, until we have investigated their contents and have been booked in, will require a recorded location. This will be referenced by the P/O and associated  Barcode.

Jobs in Progress

When stock is picked for a job, movement transactions occur - that is one or more SKU’s will have been physically removed from their storage location (and debit the storage location balance) and are grouped together and associated to the job.

 

The stock moves around the factory between the various process areas as required by the process lines on the job.

The homogenised storage location for this situation is known as the picked stock location.


When the final production process is completed, the stock is
actualised through a process called Data Entry

 

Data entry books  decorated product SKUs  into a location.

In essence Data Entry transforms stock from a grouped job level entity into individual SKU balances booked into storage locations

 

Fulfilment in Progress

This works in an identical way to jobs in progress.

Assuming a linear path of a decorated product SKU booked into location at the end of the production process (Data Entry), the despatch of this product will occur at some point via a Fulfilment.

 

When the decorated SKU is picked for the fulfilment, it is physically removed from its storage location (which debits the SKU balance for the storage location) and the stock is then associated as a grouped element against the Fulfilment

Again this is known as a picked stock location

 

It is worth remarking that whilst a production cycle may involve a (booked in) Blank stock SKU being picked from location for a job, often blank stock will have been specifically ordered for the job, and when delivered is processed straight through to the job order. Under this situation, the blank stock is never actualised as individual SKU’s booked in to a  location, as it is simultaneously picked.