Chapter 7 - Inventory and Warehouse Management Terms

Vocabulary flashcards for key terms related to inventory and warehouse management processes.

Inventory management (IM)

The set of tasks or activities that are concerned with the movement of material in and out of storage locations in plants.

Warehouse management (WM)

A set of tasks or activities that are concerned with the efficient storage and removal of materials from storage bins and allow more granular movement of materials than inventory management.

Goods receipt

Records the receipt of materials into storage, which results in an increase in inventory quantity.

Goods issue

Occurs when materials are removed from storage, in which case inventory is reduced.

Transfer postings

Used to redefine a material from one stock type (status) to another or to change the material type of a material.

Stock transfer

Occurs when materials are moved from one plant to another within the same organization.

Storage location-to-storage location transfer

A stock transfer between two storage locations within the same plant.

Plant-to-plant transfer

A movement of materials between two plants within the same company code.

Company code-to-company code transfer

A movement of materials between two plants in different company codes.

Stock transport order (STO)

An alternative to a purchase order in the purchasing process that is used to procure materials from another plant within the organization rather than an external vendor.

Storage type

A division of a warehouse based on the characteristics of the space, materials, or activity.

Interim storage areas

Designated spaces in a warehouse where materials are placed in specially designated storage types that serve as a temporary holding area until warehouse management steps are completed.

Picking area

A division of a storage area based on removing or picking materials; groups storage bins based on similar picking strategies.

Storage bins

Areas in a warehouse in which the materials are actually stored.

Transfer requirement (TR)

A document that companies use to plan the movement of materials into and out of bins in a warehouse.

Posting change notice

A request to change the status of the material in the warehouse, for example, from in quality inspection to unrestricted use.

Transfer order (TO)

A document that companies use to execute the movement of materials into and out of bins in a warehouse.

Warehouse management view

If a company stores a material in a storage location that is associated with a warehouse, then it must include additional data in the master record for that material.3 types of views: basic data, data stock placement, data stoage bins.