SETTING UP WAREHOUSE MANAGEMENT

304 Pages·2013·3.25 MB·English

Table of Contents
Introduction
Microsoft Dynamics Courseware Overview………………………………………………..………….….….....0-3
Student Objectives………………………………………………………………………………………..………….….….0-4

Module 1: WAREHOUSE MANAGEMENT INTRODUCTION
Lesson 1: Goals of Warehouse Management ...................................................................................... 1-3
Lesson 2: Terminology and Concepts ..................................................................................................... 1-5
Lesson 3: Workflow in Warehouse Management ........................................................................... 1-12
Lesson 4: Integration with Other Modules ........................................................................................ 1-21
Lesson 5: Advanced Warehouse Management ................................................................................ 1-22
Lesson 6: Test Your Knowledge ............................................................................................................. 1-23

Module 2: SETTING UP WAREHOUSE MANAGEMENT
Lesson 1: Scenario .......................................................................................................................................... 2-2
Lesson 2: Basic Setup for Inventory and Warehouse Management ........................................... 2-2
Lesson 3: Product Setup ..............................................................................................................................2 -4
Lab A: Complete Product Setup ............................................................................................................. 2-17
Lesson 4: Inventory Dimension Groups .............................................................................................. 2-18
Lab B: Using Dimensions .......................................................................................................................... 2-24
Lab C: Create Inventory Dimension Groups ...................................................................................... 2-25
Lesson 5: Physical Setup of the Inventory .......................................................................................... 2-27
Lesson 6: Logical Setup of the Inventory ........................................................................................... 2-43
Lab D: Update Store Areas ....................................................................................................................... 2-48
Lesson 7: Pallets and Forklifts ................................................................................................................. 2-49
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Lab E: Set Up Warehouse Management ............................................................................................. 2-56

Lab F: Set Up a Warehouse for Replenishment ................................................................................ 2-62
Lesson 8: Test Your Knowledge ............................................................................................................. 2-64

Module 3: INBOUND OPERATIONS
Lesson 1: Scenario .......................................................................................................................................... 3-3
Lesson 2: Purchase Order ............................................................................................................................3 -3
Lab A: Create and Receive a Purchase Order ....................................................................................... 3-7
Lesson 3: Arrival Overview and Item Arrival Journal ........................................................................ 3-8
Lab B: Inbound Operations ...................................................................................................................... 3-17
Lesson 4: Pallet Transports....................................................................................................................... 3-19
Lesson 5: Receipt Registration Requirements ................................................................................... 3-23

Module 4: OUTBOUND OPERATIONS
Lesson 1: Scenario .......................................................................................................................................... 4-3
Lesson 2: Sales Orders .................................................................................................................................. 4-3
Lesson 3: Output Orders ........................................................................................................................... 4-10
Lesson 4: Picking Process ......................................................................................................................... 4-13
Lesson 5: Shipment Process .................................................................................................................... 4-21
Lesson 6: Outbound Rules ....................................................................................................................... 4-25
Lesson 7: Shipment Reservations .......................................................................................................... 4-26
Lab A: Set Up Shipment Reservation Combinations ...................................................................... 4-34
Lesson 8: Shipment Templates ............................................................................................................... 4-35
Lab B: Set Up Shipment Templates ....................................................................................................... 4-39
Lesson 9: Picking Routes .......................................................................................................................... 4-40
Lesson 10: Deliver Picked Items ............................................................................................................. 4-42

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Table of Contents
Lesson 12: Shipment Staging ................................................................................................................. 4-46

Lab C: Consolidated Picking .................................................................................................................... 4-51
Lab D: Picking and Shipping Items ....................................................................................................... 4-54

Module 5: RFID IN WAREHOUSE MANAGEMENT
Lesson 1: Scenario .......................................................................................................................................... 5-2
Lesson 2: RFID Technology ......................................................................................................................... 5-2
Lesson 3: RFID Administration ................................................................................................................... 5-4
Lesson 4: Receiving with RFID ................................................................................................................ 5-12
Lesson 5: Picking, Packing, and Shipping with RFID ...................................................................... 5-18

Module 6: QUARANTINE MANAGEMENT WITH PALLETS
Lesson 1: Scenario .......................................................................................................................................... 6-2
Lesson 2: Set Up Quarantine ...................................................................................................................... 6-2
Lesson 3: Item Receipt ..................................................................................................................................6 -5
Lesson 4: Quarantine Orders ..................................................................................................................... 6-8
Lab A: Set Up and Use Quarantine Management with Warehouse Management ............. 6-14

Module 7: INHOUSE WAREHOUSE OPERATIONS
Lesson 1: Scenario .......................................................................................................................................... 7-2
Lesson 2: Pallet Transports.......................................................................................................................... 7-2
Lesson 3: Refill Pallet Transports .............................................................................................................. 7-7
Lab A: Pallet Operations ............................................................................................................................... 7-9
Lesson 4: Quantity Adjustments ............................................................................................................ 7-10
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Lesson 5: Inquiries ....................................................................................................................................... 7-12

Lesson 6: Reports ......................................................................................................................................... 7-20
Lab B: Set Up and Run the Warehouse Capacity Report .............................................................. 7-43
Lesson 7: Role Centers ............................................................................................................................... 7-47
Lab C: Use Warehouse Management ................................................................................................... 7-55
Lesson 8: Test Your Knowledge ............................................................................................................. 7-64

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MODULE 1: WAREHOUSE MANAGEMENT
INTRODUCTION
Module Overview
Warehouse management is the administration and management of item flow and
inventory in a company’s warehouses and storage facilities. The Inventory and
warehouse management module helps you manage related activities. This
includes receipt, storage, transfer, and shipping of items for production, purchase,
and sales orders.
Warehouse management in Microsoft Dynamics® AX 2012 helps optimize and
streamline item flow through the warehouse. The system can be set up based on
how the company wants to handle inventory.
When warehouse management is configured and used throughout the product
life cycle, the system makes the work at the warehouse more efficient and
manageable. Warehouse management can, for example, quickly and easily answer
questions such as the following:
• Where should/can this item be stored?
• Which items should be/are ready to be shipped?
The Inventory and warehouse management module integrates with other
functionality in Microsoft Dynamics AX 2012.
For example, items received by using warehouse management can be viewed and
processed in other Microsoft Dynamics AX 2012 modules.
Warehouse management provides the flexibility and control to optimize
warehouse processes according to your individual needs.
Objectives
The objectives are:
• Explain the goals of warehouse management when you work with
Microsoft Dynamics AX 2012.
• Define warehouse management key terms and concepts.
• Describe the flow of transactions in warehouse management.
• Describe the integration between warehouse management and other
modules in Microsoft Dynamics AX 2012.

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Identify the difference between Advanced Warehouse Management and standard

Warehouse Management.
Key Benefits
The key benefits of warehouse management include the following.
• Optimizing your warehouse layout to increase efficiency.
• Obtaining a complete overview of inventory to help improve
customer service.
• Streamlining your warehouse processes to reduce costs.

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Module 1: Warehouse Management Introduction
Go als of Warehouse Management
Warehouse management provides insight into your inventory and tools to help
increase customer satisfaction and reduce costs.
Optimize Your Warehouse Layout
With warehouse management, you can define your warehouse layout according
to changing needs. It helps optimize warehouse efficiency in the following ways:
• Establish high- and low-priority storage areas for the best placement
of goods
• Block locations to restrict the movement of goods.
• Divide your warehouse into zones to accommodate different storage
needs, such as temperature requirements or the rate of turnover of
various items.
• Use inventory dimensions to define the physical location of a product.
When you use precise and detailed locations in warehouse management, you can
effectively retrieve and put away products. . Therefore,, they are received and
delivered or moved more effectively throughout the supply chain process.
Each legal entity in a business must set up at least one site. Within the scope of
the site, you can define many warehouses. Again, within any warehouse, locations
can be specified to more exactly define the physical placement of the products.
Warehouse management defines locations based on parameters such as space
and pallet type. Additionally, you can either control how items are stored based
on predefined location rules, or use more flexible methods to manage item
storage.
Increase Your Warehouse Efficiency
Warehouse management helps you use warehouse space efficiently by
automatically identifying optimal storage locations for items, based on the
characteristics of items and warehouse zones. Warehouse management tracks a
complete history of actions and item identifiers so that you can use bar coding to
increase speed and accuracy when picking and storing items.

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Use warehouse management to determine the most logical sequence of picking

locations to optimize your picking routes and to speed up order fulfillment to
customers. The system allocates picking routes based on parameters such as
picking area and location sorting parameters. Several orders can be included in
one route for better use of pallet loads and to increase warehouse efficiency. For
example, you can use refill pallet transports to fill picking locations from bulk
storage locations. You can speed up picking and packing with good visibility into
possible pick locations with the help of shipment template and outbound rules.
Shipment reservation sequences are used to set up the flow of warehouse and
reservation combinations. This means that you can improve overall efficiency by
using internal transfers to move items directly from the warehouse into
production.
The Warehouse Layout Example figure shows two warehouses (22 and 23) that are
a part of Site 2 within the CEU legal entity. It shows how the inventory dimensions
help exactly define where the products are located.

FIGURE 1.1: WAREHOUSE LAYOUT EXAMPLE

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Module 1: Warehouse Management Introduction
Visibility into your Supply Chain

Radio Frequency Identification (RFID) technology helps manufacturers and
distributors improve visibility into their supply chain by increasing the number of
data capture points in their supply chain.
When you put RFID tags on pallets, cases, and items, they can be uniquely
identified and tracked in the supply chain. You can use this technology to find
products in a specific area (for example, the shrink wrapped pallet defined area of
the warehouse) and to tie the unit of items to transactions, such as when it is
received, and any associated purchase orders, sales orders, and customers.
Trace Your Inventory
To track items internally and throughout the supply chain, you can automatically
have inventory stamped with a number that links shipments and deliveries. For
improved tracing of your inventory, use warehouse management to create as
many serial or batch numbers for the automatic numbering of items as needed.
Additionally, you can use inventory dimensions to determine the exact location
and the movement of a specific item in your warehouse. This can include the
following.
• Site
• Warehouse
• Location
• Pallet ID
• Batch number
• Serial number
Terminology and Concepts
This lesson includes some brief explanations of the terms that you use when you
work with warehouse management in Microsoft Dynamics AX 2012.
Sites
Definition: A site is a group of business resources, such as warehouses and
production units, that share interrelated transactions, are located at a particular
geographic location, and belong to a single legal entity.
Sites are an inventory storage dimension, and they can be linked to the financial
dimensions framework for general ledger integration. At least one site must be
created for each legal entity in Microsoft Dynamics AX 2012, and all transactions
must refer to a site. A single site cannot be shared by multiple legal entities.

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A company can establish logistic operations at multiple sites for many reasons. For

example, the company may set up distribution centers that serve different
geographic markets or set up production facilities at a particular location because
of reduced overhead costs, closeness to raw materials, or convenient
transportation.
Usage Example: You can configure multiple sites to reflect your unique business
model and support operations and process flows. Some examples of business
environments where you could set up multiple sites include the following:
• A single production site that uses a single warehouse.
• A single production site that uses multiple warehouses.
• Multiple production sites that use a shared distribution center.
• Multiple local production sites that use a shared production site.
You must analyze business requirements and determine how best to use the site
functionality to align with a company's business processes.
Warehouses
Definition: A warehouse is a place that can store items. All items that are
accounted for by the system must be placed in a warehouse. Because many
parameters and policies are set up for each warehouse, you can control and
differentiate the warehouse operations by defining several warehouses.
A warehouse is usually associated with a specific address or is a designated
building at an address. Each warehouse is typically a physically separate unit.
When you indicate a warehouse for a transaction, you specify the site where you
can place or pick an item geographically. This means that you must use separate
warehouses for distinct geographic locations.
In some cases, you can also have virtual warehouses. This means that the
warehouse might not be a separate physical building, but instead a logical
separation or part of a building. This strategy is frequently used to meet complex
business requirements.
Usage Example: You must create several warehouses that correspond to the
different addresses, buildings, and so on, where the items are located. The
buildings could also be so close to one another that they can easily belong to the
same warehouse.

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