Allocation Mode in oracle cloud WMS

In Oracle Cloud WMS, the Allocation Mode is a fundamental configuration within a wave template that defines the rules and sequence for how inventory is allocated to fulfill orders. It is a critical component for controlling the entire picking process, from what inventory is selected to how it is picked and consolidated.

Key Functions of an Allocation Mode

An Allocation Mode is not a single setting, but rather a collection of rules and sequences that work together. Its primary functions include:

• Defining the Allocation Sequence: This is the core of the Allocation Mode. It establishes the order in which the system looks for inventory. For example, a common sequence might be:
1. First, allocate Full LPNs (License Plate Numbers) from a specific reserve area.
2. Next, allocate Cases from a designated active or pick location.
3. Finally, allocate Units (or eaches) from any available active location.

This hierarchical approach allows the warehouse to prioritize picking from locations that are more efficient (e.g., full pallets) before breaking down into smaller units.

• Specifying Location Types: The Allocation Mode dictates which types of locations the system should allocate from. The most common location types are:

• Active Locations: These are typically the primary picking locations where units or cases are stored for fast access.
• Reserve Locations: These are bulk storage locations where full pallets or LPNs are kept.
• Location Areas/Zones: You can further restrict allocation to specific areas or zones within the warehouse to optimize travel paths and balance the workload.

• Determining the Unit of Measure (UOM) for Picking: The Allocation Mode specifies the level at which the system should allocate inventory. This can be at the LPN, case, pack, or unit level. The system uses the item's standard pack or case quantities to determine if a full case or pack can be allocated.
• Controlling Cubing and Cartonization: The Allocation Mode is directly linked to the cubing process. It defines how and when the system should create outbound containers (e.g., cartons, totes). Options typically include:

• Non-Cubed: The system allocates items without considering their dimensions.
• Cubed: The system uses the Cubing Rule to calculate the best-fit container based on item volume and weight. This can happen "with the wave" (at the time of allocation) or "at packing" (the container is determined during the packing process).

• Distribution Mode: This setting is used for "put-to-store" or consolidation processes. It defines how inventory picked in bulk should be distributed to specific outbound containers or locations.

Example in Action

Imagine you have a wave template for a large retail order. The Allocation Mode might be configured as follows:

1. Sequence 1: Allocate Full LPNs from Reserve locations.
2. Sequence 2: Allocate Full Cases from Active locations.
3. Sequence 3: Allocate Units from Active locations, using a Cubing Rule to determine the carton size.

When the wave is run, Oracle Cloud WMS will first try to fulfill the order by allocating any full pallets that contain the required items. If it can't find full pallets or needs more inventory, it will move to the next sequence and allocate cases. Finally, it will allocate individual units, and for those, it will use the Cubing Rule to figure out which size box the picker should use.

In summary, the Allocation Mode is the strategic brain of the wave template, orchestrating how inventory is sourced and assigned to tasks to ensure efficient and accurate fulfillment.

Thank You,
Pratip Chatterjee