Bin records are created or updated automatically by the system as required, based on the transactions processed for each item. If an item is received into a bin location that does not already have a quantity, the system creates the bin for the item in the warehouse you are receiving into. If a bin record already exists for the item in the warehouse, the system updates the quantity in the existing bin record. As bins are emptied the system either deletes the bin record for the item, or if the bin is designated as “static”, the bin record is retained in the bin master file for future use. This flexibility allows you to have both re-usable bins (bins that are made available as they are emptied and that are not tied to specific items) and bins that are reserved for specific items regardless of whether you have the items in stock. The re-usable bins are suited for situations where different items are moving through the warehouse on a regular basis. The static bins are more suited for situations where the same items are normally stocked and you may need to replenish specific static locations (a quick pick area for the most common items that you sell). Static bins are normally restocked using a process called bin replenishment. Static bins also store a maximum quantity (the maximum or optimal quantity to be stored in the bin). This maximum quantity is used during the replenishment process as explained in the next section.
If you consistently want to locate items in the same location each time you have them in stock, you can set up static bin records as described above. Static bin records can also be used in situations where you have both bulk and picking locations for the same item number and want to refill the picking bin for the item whenever it gets below a minimum quantity. The Bin Management system provides two tools to support this situation. A replenishment report is provided to examine all static bins and to list those static bins that have a quantity less than 50% of the maximum quantity defined for the bin. The output from the report is used to identify the bins in need of replenishment.
The second bin replenishment tool is a program that is used to convert between different SKU numbers for the same item. If you maintain two item numbers for the same item number with different units of measure, (a 5 pack and an each item number for the same item), the SKU conversion program can be used to break up the 5 pack items and convert them to the each item. Records can be set up in the Cross Reference Table to store the item number relationships and the conversion ration between them. This information is then used during the conversion process. If the transaction results in a change to the cost of the items, the system averages the new cost into the existing items to keep inventory in balance.