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A logistics path in DEAR reflects the physical movements of components and finished goods. Product storage, Sales orders and Production Orders all specify a location. A logistics path connects these locations in the system. This is used to factor in the lead time for components for accurate ordering and production scheduling. It also enables automatic generation of documents (purchase orders, transfer orders, etc.) and logs stock movements. 


Prerequisites


Table of Contents


Define Shop Floor locations

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It is required to set up Locations and Bins before setting up a Logistics Path. Locations are added and managed from Settings → Reference Books → Stock → Locations & Bins. Add new Locations by clicking Add more items and filling in the location name and address. 


Specify locations where finished goods are produced by checking the Shop floor location checkbox. These are locations where Production takes place. This will enable the location to be selected as a Shop floor location in a Logistics Path and used in Production Orders. It will also allow Resource capacity to be defined for the location. 



Set up Bins for Shop floor locations

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Bins are used to specify where the stock is stored within a location. In the case of Shop floor warehouse locations, bins define where the components should be brought for the production purposes. 


For example, to produce a chair, wood, paint and textile are needed. So, the components wood, paint and textile should be brought to the Shop floor location into the Bin set up for chair production. This will be linked to the Work Centre where chair production takes place. The components and resources needed for the operation will be pulled from inventory and delivered to the bin. 


Set up a bin for a Shop floor location:

  1. Go to the Bins tab on the location screen. 
  2. Select a Shop floor location from the Select a location to manage bins drop-down list.
  3. Add a bin name by clicking the + button. The bin name does not have to be unique. 
  4. Connect the bin to a Work Centre by selecting a Work Centre from the drop-down list and clicking the button.
    • One Bin can be connected to several Work Centres. Each Work Centre can only be connected to one Bin on a Shop floor location. 



Set up a Logistics Path

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Every object in DEAR Inventory has a location. 

  • Products specify a Warehouse location where the product is stored.
  • Sales Orders specify a Sale location where the product is sold.
  • Production orders specify a Production warehouse location (Shop floor) where finished goods are produced. 


As in real life, a product cannot be in two places simultaneously and cannot be transferred between locations at the click of the mouse. The physical movement of stock requires actions to be triggered and time – logistics paths are set up to reflect that. 


NOTE: The Logistics path can specify that Warehouse location, Sale location and Shop floor are the same physical location, but it must be defined as a Shop floor location.


Set up a Logistics Path:

  1. Select the Logistics Path tab on the location screen.
  2. Click the + button to add a new Logistics Path.
  3. Fill in the fields:
    • Pick components from – a drop-down selection field. It contains the list of all locations. This is a stock storage location.
    • Shop floor warehouse – a drop-down selection field. It contains the list of all locations defined as Shop floor warehouse locations set up for the system.
    • Sale Location – a drop-down selection field. It contains the list of all locations.
  4. Continue adding Logistics Paths until you have finished.
  5. Save your changes.


NOTE: Each warehouse or retail location can be connected to multiple Shop floor locations. However, each Shop floor location can only be connected to one warehouse. 


How the Logistics Path works

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Let us look at an example to see how a Logistics Path works in the system. 


Our company has 6 locations:

  • Dubai Warehouse
  • Dubai Plant
  • Dubai Shopfront
  • Moscow Warehouse
  • Moscow Plant
  • Moscow Shopfront.


It is logical that everything that is sold in Dubai will be delivered from the Dubai stock and produced at the Dubai plant. It is illogical to produce the products in Moscow and deliver components for this production from Dubai when there is production in Dubai. 

So, in this sample, there will be 2 logistics paths:

  • Dubai Warehouse - Dubai Plant - Dubai Shopfront
  • Moscow Warehouse - Moscow Plant - Moscow Shopfront.


Example:

  1. There is a Sales Order for a Finished Product in the location: Dubai Shopfront
    • This means that the Finished Product was sold in the Dubai Shopfront location and should be delivered to the Dubai Shopfront location (to be delivered to the customer or collected by the customer).
  2. The Logistics Path set up is Dubai Warehouse - Dubai Plant - Dubai Shopfront.
  3. DEAR generates a Production Order with location 'Dubai Plant' (Shop floor location).  
    • The Dubai Plant location has Bin 1, Bin 2, Bin 3 set up. 
    • The operations in the Production Order define Work Centres(e.g. Workshop 1, Kitchen) as their places of production. Each Work Centre is connected to a Bin on that Shop floor. All components for a production operation should be delivered to the appropriate bin:
      • Operation 1 - Work Centre 1 - Bin  1
      • Operation 2 - Work Centre 2 - Bin 1
      • Operation 3 - Work Centre 3 - Bin 2.
  4. The Logistics Path specifies that the components are stored in Dubai Warehouse. They must be delivered to the correct bins in Dubai Plant. DEAR creates transfer orders for the components from Dubai Warehouse → Bin 1 and Dubai Warehouse → Bin 2. The transfer order creates a record in the Movements tab for that product. Stock Availability is reduced in the warehouse location and increased in the accepting location.

    NOTE: If a warehouse location and shop floor location are the same, no transfer order is created.
    • Example: 5 items of a component is needed to transfer from Dubai Warehouse to Dubai Plant.

      Availability - Dubai Warehouse:
      Stock value - 100.00 (the price for each is 10.00)
      On hand - 10.00 (no any orders for this component)
      Available - 5.00 (5 items are now available in the stock because 5 items are allocated)
      On order - 0.00 (no replenishment orders for this component)
      Allocated - 5.00 (because 5 items are needed for the production order)


      Availability - Dubai Plant:
      Stock value - 0.00
      On hand - 0.00
      Available - 0.00
      On order - 0.00
      Allocated - 0.00


    • Example: After the picking is done for the Production Order, a Transfer order appears for the component; the Component Movement tab contains the Transfer order.


      Availability - Dubai Warehouse:

      Stock value - 50.00 

      On hand - 5.00

      Available - 5.00 (5 items are left in stock)

      On order - 0.00 (no replenishment orders for this component)

      Allocated - 0.00
       
      Availability - Dubai Plant:
      Stock value - 50.00
      On hand - 5.00
      Available - 0.00
      On order - 0.00
      Allocated - 5.00 (stock is allocated for the production order)


  5. When the finished goods are produced, they should be stored somewhere. This is the procedure similar to the movements of the components: by default, the finished good is Put Away to the Dubai Plant location. If the Put Away location is not the default location, the accomplishing documents and stock movements should be executed.


Editing the Logistics Path

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Editing a Shop floor location

Shop floor locations are edited from Settings → Reference Books → Stock → Locations & Bins, on the Locations tab.


It is possible to edit the location name of the Shop floor by clicking the name and pressing the Save button. When the name is edited, it is changed in all objects where it is used (Production Orders, Products, etc.).


It is possible to check/uncheck the Default location checkbox for the Shop floor. When unchecked, the location is no longer set for the Production Orders by default. If the checkbox is unchecked for the location and no any other location is checked as default, there is no default location set in the Production Order and the user has to choose the location according to the set logistics path.


It is not possible to delete the location or bin if there are references to it, i.e. if it is used in any objects (orders, etc.). It is possible to delete the location if references to it are removed (i.e. orders voided, etc.). Locations can be deprecated to make them unable to be selected.


Editing the Logistics Path

Logistics Path locations are edited from Settings → Reference Books → Stock → Locations & Bins, on the Logistics Path tab.


It is not possible to delete the logistics path if there are references to it or change the locations inside the logistics path if there are references. It is possible to delete the logistics path if there are no references to it. 

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