A lot of setup is required, but space utilization improvements of 25% or more are
not unheard of
3. Inventory allocation
a. This is the process of determining the bin from which inventory is to be picked to
satisfy a demand
b. At the most basic level the operator performs inventory allocation by choosing
the bin from which to pick inventory from a list of available bins shown on a pick
list
c. The WMS performs inventory allocation when an order is released for picking
d. There are many different methods of inventory allocation – these will be
addressed in a subsequent article