Fulfillment inventory allocation strategies

Defining a fulfillment inventory allocation strategies has two aspects, which are defined on different levels

Goods priorization strategy

The goods priorization strategy is defining which articles are taken from stock when multiple instances exist. There exist three goods priorization strategies:

• First In First Out (FIFO) - The goods which are longest on stock are pushed out first [default]
• Last In First Out (LIFO) - The goods which arrived last are pushed out first
• First Expiry First Out (FEFO) - The goods which will expire fist, will be pushed out first.

The fundamental strategy is defined:

• on digital level (global setting)
• on classification level (general setting), but can be overridden
• on warehouse and classification level (specific setting)

On digital level, you may define a article classification structure, which holds the classification specific settings.

Order priorization strategy

The order priority defines in which orders are processed in fulfillment. There are three strategies:

• First Come First Serve (FCFS) - This is the default strategy, which processes orders in the sequence of their arrival.
• Last Come First Serve (LCFS) - This favors the fulfillment of newly arrived orders.
• Optimized for Shipment Cost (OSC) - This tries to reduce shipment cost by favoring orders which can be fully fulfilled.
• Optimized for Order completion (OOC) - This tries to reduce the number of unfilled orders by favoring orders with little order position count.

Related articles

• Warehouse Management System (WMS)