Underpicks

Underpicks

When a picking exception other than a partial pick occurs, item balance adjustments occur at two intervals: when the pick is posted and when the order is closed. If an item is underpicked, or picked short, the following balances decrease by the quantity actually posted:

On-hand quantity

Note: As the on-hand quantity at the warehouse decreases by the quantity picked, the on-hand quantity in the staging area increases by the quantity picked. In other words, the inventory is moved from the online storage area of the warehouse to the online staging area.

Released requirements quantity
Total requirements quantity

Meanwhile, the allocated quantity immediately decreases by the original quantity allocated. Since the available quantity is calculated by subtracting the allocated quantity from the on-hand quantity, the available quantity is also immediately adjusted. At this time, the on-hand quantity, the allocated quantity and the available quantity are accurate; however, the released requirements quantity and the total requirements quantity still include the difference between the quantity allocated and the quantity picked. Both of these balances are decreased by this difference when the entire order is closed. This decrease also adjusts the available-to-release quantity, which is calculated by subtracting the released requirements quantity from the on-hand quantity.

Available-to-Release = On-hand - Released Requirements
Quantity Quantity Quantity

For example, the snack bar orders nine chocolate bars. All nine are allocated to the order and printed on the pick list. However, when the warehouse staff member goes to pick the nine chocolate bars, only seven are picked. The order is picked short. The warehouse manager uses the Post Picking Activity (PPA) screen to record that seven chocolate bars were actually picked. At this time, the following balances decrease by seven:

On-hand quantity
Released requirements quantity
Total requirements quantity

The allocated quantity, on the other hand, immediately decreases by nine even though only seven were picked. This decrease deallocates the remaining two chocolate bars so that they can be allocated to another order. As a result, the available quantity immediately increases by two to show that the two chocolate bars not picked are now available to be allocated to other orders.

	On-hand quantity	Total Requirements Quantity	Released Requirements Quantity	Allocated Quantity	Available Quantity	Available-to- Release Quantity
Beginning Balance	15	0	0	0	15	15
Order Entered into the NCAS		+9
Order Released and Allocated			+9	+9	-9	-9
Underpick Posted	-7	-7	-7	-9	+2
New Balance	8	2	2	0	8	6

Since the order was picked short, the NCAS realizes that the order is considered complete. In other words, the remaining two chocolate bars will not be picked. At this time, the on-hand quantity, the allocated quantity and the available quantity are accurate; however, the released requirements quantity, the total requirements quantity and the available-to-release quantity still reflect the two chocolate bars that were not picked. The NCAS reconciles this when the usage order is closed by decreasing the release requirements quantity and the total requirements quantity by two. As a result, the available-to-release quantity increases by two to show that the two remaining chocolate bars are now available to be released to other orders.

On-hand
quantity Total
Requirements
Quantity Released
Requirements
Quantity Allocated
Quantity Available
Quantity Available-to-
Release
Quantity

Beginning
Balance 15 0 0 0 15 15

Order
Entered into
the NCAS +9

Order
Released and
Allocated +9 +9 -9 -9

Underpick
Posted -7 -7 -7 -9 +2

Order
Closed -2 -2 +2

New
Balance 8 0 0 0 8 8

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