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
Under this model, SKU’s are accounted for whenever they
Come In to TOT's premises (i.e. booked in, the SKU balance is credited)
Go Out (i.e. picked, the SKU balance is debited)
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
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.
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.