The putaway algorithm utilizes criteria that include SKU, packaging type, capacity constraints and sorting/sequencing strategy. The algorithm goes through all locations in a warehouse and applies or verifies constraints to arrive at the optimal location. The following figure illustrates the putaway algorithm.
The putaway algorithm is initiated based on events that occur in a warehouse.
The business process configuration and algorithm answers the following questions:
- When
to putaway?
Putaway inventory upon receipt or after inspection or VAS is complete. Another example is, initiation of a putaway request after completing VAS.
- What
to putaway?
Putaway can be initiated for a SKU, case or pallet with LPN. It can also be initiated for Pallets or Cases that do not have contents. Each of these attributes influence the resultant locations.
- Where
and how to putaway?
Constraints for storage, capacity and storage preferences are considered.
Storage Constraints
Storage constraints are specified in a warehouse to match an item or inventory attributes to a location. The ensures that constraints defined are not violated while suggesting putaway locations. Different constraints defined are:
Zone Dedication
A zone in the is a group of locations that have similar attributes. A zone in a warehouse is used to distinguish storage types or types of item stored.
- Ability to designate a zone to an enterprise.
An example is a 3PL warehouse that has multiple clients. When a zone is dedicated to a specific or set of enterprises, only products belonging to those enterprises is putaway into the zone.
- Ability to restrict a zone for a particular type
of SKU or storage types
An example is a zone for hazardous or high-value items. When a zone is dedicated to a specific type of item, other types of products cannot be putaway into such zones.
Location level Dedications
A specific location can be dedicated to an item. This automatically restricts other items into the same location.
Zone level product mixing or segregation constraints
A warehouse can define additional constraints for each zone so that products with different inventory attributes are not putaway in the same location. These attributes include enterprise, SKU, and receipt number. An example of storage types and constraints are described in the following table.
| Type of Storage | Constraints |
|---|---|
| Bulk Zone—Pallet Racks | Do not mix SKU and do not store products with different FIFO in the same location. |
| Active/Forward Pick locations | Do not mix Items. However, products with different FIFO/Receipt can be stored in the same location. |
| Bulk—Case Storage | Match item velocity to location velocity. It is acceptable to mix products in a location, but do not mix products belonging to different enterprises in the same location. |
A warehouse that tracks inventory at a case or pallet with LPN could combine enterprises in the same location. This would result in better asset and resource utilization.
Capacity Constraints
A warehouse can define capacity constraint in terms of maximum weight and/or volume that can be putaway to a location. In addition to weight or volume, the allows defining capacity constraints in terms of number of units of a specific UOM. For example, a location may hold four pallets for all items except for some items that are large and can hold only one pallet.
Storage Preferences
In addition to defining constraints at zone or location level, the sets additional preferences specific to inventory type. An example of storage preferences is described in the following table.
| What to Putaway | Where to Putaway |
|---|---|
| All Pallets of Hazardous Materials | Putaway to zone 1. If there are no locations in zone 1, putaway to zone 2. |
| Camcorders | Putaway to zone 3, which is a lock and key storage zone. If there are no locations in zone 3, then putaway in zone 4. |
| All damaged products | Putaway to zone 5, which is designated for damaged products. |
| Refrigerated products | Putaway to Zone 6, which has freezer locations. |
A warehouse configuration in the is illustrated in the following figure.
