Allocation Cost Schemes allow us to customize the logic used when determining allocating locations via customer data, rather than code.
In particular, it allows a Client/LOB or item to be configured to:
- Try to NOT split cases
- Try to minimize the number of picks
- Try to deplete locations
- NOT try to break FIFO (First In First Out)
Giving an example scenario works best for describing how this would work in a real-world case.
EXAMPLE: Box Company has come to us with a picking optimization request.
Here is the scenario: Item A has 3 boxes. Box 1 has a quantity of 20, Box 2 has a qty of 20, and Box 3 has a quantity of 10. They receive an order for 10 of Item A. Instead of Infoplus sending them to Box 3, it is sending them to Box 1 and telling them to grab 10. They would prefer that the system recognize that Box 3 already has 10 and have them pick it rather than having them break open a case of 20.
They are currently using weak FIFO with Simple Wave pick sorted by Location. They are okay with picking newer boxes in situations like this.
The solution: Define a table (scheme) of costs that can be applied to an allocation plan. Describe the allocation issue you're facing, either with locations or items, and we will come up with an allocation cost scheme that will solve the issue.
Cost-On-Locations: The cost to allocate to a location, relative to other locations in your warehouse.
Cost-Per-Pick: The cost of each pick. A higher pick cost means the system will pick as little as possible to get the job done.
Cost-On-Locations and Cost-Per-Pick work together and can be used, to try to minimize the number of picks. Less preferred locations have a higher cost, and more preferred locations have a higher cost.
Each LOB and client setup is unique and tailored, but cannot be done on your own in the system (currently). Contact Infoplus Support to have us review and set up a scheme for you.