Dynamic allocation overview

Dynamic allocation is also known as pallet swapping and soft allocation. To fully understand dynamic allocation, you must understand allocation and the picking process.

Dynamic allocation supports organizations that require flexible shipping operations. The application manages the strict rotation of items based on predefined rules. However, some operations need to bend these rules to serve their customers.

Other operations need the flexibility to pallet swap because they use floor-stacked reserves that contain many pallets or multi-pallet racking for reserve storage. Using normal, hard allocation methods, an application strictly rotates and calls for the oldest pallets first, even if they are buried in the back of the location. With dynamic allocation, warehouses can set guidelines that determine a rotation strictness tolerance level to achieve maximum productivity. The pallet swapping capability allows the picker to select any pallet from the location as long as it meets other rotation requirements.

Dynamic allocation creates records called demand allocation. These records direct the picking process, but do not officially create the detailed pick records until the associate has completed the pick using an RF device.

This type of allocation has several advantages:

• Items can be moved within the warehouse at any time, because dynamic allocation does not lock in the lot, location, or license plate until the associate performs the pick.
• This enables pallet swapping because the system does not determine which pallet to pick for the order prior to the pick being performed.
• Dynamic picking is realtime. When the associate has completed the pick from its original location to its staging or holding location, the move also updates the corresponding tables. This means that all inventory in designated locations is current for cycle counting, physical inventories, and so on.
• The allocation time for shipment orders on a wave is substantially reduced because the system does not set all the details about what needs to be picked during allocation.

  Dynamic allocation can also be configured to use system cartonization logic to help direct the picking of case quantities to containers based on item setup. The system can determine which items can be picked to the same outbound container so work can be distributed to associates as needed.