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Goods are fed from the main warehouse to the picking area manually, as a precaution or on-demand. Depending on which criterion drives the replenishment, either the staging procedure, the reorder point procedure or the cycle time procedure is created. The supply method is particularly suitable for self-regulating replenishment of the supply buffer of a consumption point (e.g. assembly line).
A characteristic of this process is the dependence on consumption.
Basic principle of the provisioning process
In the pre-buffer area, a unit is waiting to be pushed into the next area. The replenishment to the next area takes place as soon as the content in it is used up. The storage unit then automatically moves to a so-called staging area.
Two replenishment options
Consumption-based provisioning includes two replenishment options.
- One option concerns the filling of the buffer space. When a replenishment unit is delivered, the system checks whether there is free storage space for further units in the pre-buffer area. Free buffer locations are then filled with units.
- The other option concerns the removal of storage units from the staging area. This checks whether the area still contains consumption units. If this is not the case, replenishment is requested.
Advantages and disadvantages of the provisioning method
Compared to the reorder point procedure and the cycle time procedure, the advantage of the staging procedure is the self-regulating stock level, which is kept at a minimum level, and the short replenishment time. The disadvantage is the increased replenishment costs that arise if the replenishment quantity is set too low or the material consumption increases very quickly.
You can find more information on possible replenishment procedures under Reorder point procedures.
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