FIFO Dispatch vs Volume-Based Allocation
Upon cross-checking, it was observed that the system is not consistently following the FIFO (First In, First Out) strategy during auto allocation of stock for Sales Orders and Transfer Orders.
Instead of prioritizing stock received through Purchase Orders, the system is randomly allocating SKUs from Returns/TRFs.
Also For large-volume orders, the current picking strategy does not prioritize high-quantity bin locations. There is a requirement for a customized picking strategy that:
- Allocates stock from high-quantity bin locations for bulk orders, OR
- Follows a predefined customized allocation strategy suitable for large order volumes
We need the below corrective Points:
- Technical team to review system configuration and allocation logic.
- Identify root cause of deviation from FIFO strategy.
- Provide corrective solution or configuration adjustment to ensure FIFO compliance.
- Technical team to evaluate customization options for volume-based picking strategy.
- Share proposed logic flow and impact assessment
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