View source | View content page | Page history | Printable version   
Toolbox
Main Page
Upload file
What links here
Recent changes
Help

PDF Books
Show collection (0 pages)
Collections help

Search

Projects:Referenced Inventory/Functional Specification

Contents

My Project - Functional Specifications

Overview

Referenced Inventory is the preferred way to deal with variable inventory quantities, also known as Catch Weight Management because it typically happens for items that have both Weight and (some kind of) unit, like each, bag or pallet, as unit of measure.


Purpose

The purpose of the Reference# is to uniquely identify “an object” in a Whse to facilitate identification and movements. This object can be a single product or it can be a multiple-product grouping (pallet). The Reference# as such is only relevant when these products are inside the company/warehouse and in no means have value for the end-customer, like lot- or serialnumbers have.

Referenced Inventory allows to see the average or typical weight of the item and the actual weight of the specific unit. This difference becomes relevant only when each unit of the inventory is of a (slightly) different quantity and the company values this difference to have it registered.

Scope

The scope is to implement Referenced Inventory basics, an gradually expand until all business processes use it. Specific functionality for multiple-product objects are not in the scope.

Dynamics

A good way to see the dynamics of referenced inventory is when we recognize this as a typical complexity in the process manufacturing industry. Where its counterpart, the discrete manufacturing industry deals with BOMs, assembly of components and discrete units, the process manufacturing industry deals with ingredients, bulk-materials and formulas.


As used in the Process Industry

Referenced Inventory is typical for the process manufacturing industry:

Now we know for fact that each unit is not exactly 2,5 KG: If we would show enough decimals (and have proper measuring equipment), we would eventually see a digit different than 0. Consequently, a pack or pallet is also not exactly 10 or 500 KG... The business-question here is: "How relevant is this and do we want-or-need to record this in our system?"

See below an example of REFERENCED inventory of three GOLD BARs from the same batch (XYZ) but each have a slightly different weight. When we scan the REFERENCE 12345678, we know that we are transacting that specific gold bar, that is stored in SAFE-1 and has Lotnumber XYZ and weighs 1,00391 KG.

Product Location Lot/Serial Reference Quantity (BaseUM)
GOLD BAR SAFE-1 XYZ 12345678 1,00391
GOLD BAR SAFE-2 XYZ 23456789 0,99024
GOLD BAR SAFE-3 XYZ 34567890 1,00118


And here an example of NOT-REFERENCED inventory of 4000 KG of timber of 20*80*4 cm.

Product Location Lot/Serial Reference Quantity (BaseUM)
TMBR20*80*4 WHSE ABC 4000

From the perspective of the finance dept. there is 4000 KG of timber. From the perspective of the warehouse, there are 8 pallets. And from the perspective of the sales dept. there are either 1600 units or 400 packs. These are just different visualizations where all visualizations -obviously- accumulate to the same quantity, measured in BUM.

Product Location Lot/Serial Reference Quantity UoM GTIN
TMBR20*80*4 WHSE ABC 4000 KG (BUM)
TMBR20*80*4 WHSE ABC 1600 EA (AUM) AABBBBBCCCCCD
TMBR20*80*4 WHSE ABC 400 PK (AUM) XAABBBBBCCCCCD
TMBR20*80*4 WHSE ABC 8 PL (AUM) YAABBBBBCCCCCD


As used for Multiple-product grouping in Warehousing

As described earlier, Reference# are given upon creation of the inventory, and when relevant. The Reference# is an unique number and as result, all (relevant) single objects are uniquely identifiably when created.

An additional use of the Reference# is to identify an object that consists of multiple products, typically a pallet that has been created as result of a picking process and is to travel as complete object to the next stage, either customer shipping or production. The process for that is to constitute a new reference and add the single objects to it. In that process, the single object will adopt the Reference# of the newly constituted object (pallet). See below an example of a multi-product pallet that share the same reference number.

Product Location Lot/Serial Reference Quantity (BaseUM)
CHEESE CHEDDAR SHIPDOCK-X XYZ 66778899 48,00391
CHEESE OLD AMSTERDAM SHIPDOCK-X ABC 66778899 51,99024
CHEESE ROQUEFORT SHIPDOCK-X FGH 66778899 38,00118

Note that the total weight per lot is the sum of the individual single objects (cheeses).

Retrieved from "http://wiki.openbravo.com/wiki/Projects:Referenced_Inventory/Functional_Specification"

This page has been accessed 337 times. This page was last modified on 27 May 2015, at 07:48. Content is available under Creative Commons Attribution-ShareAlike 2.5 Spain License.