what is storage location assignment

Storage Location Assignment Problem in a Warehouse: A Literature Review

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• First Online: 23 May 2023
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• Lucy Medrano-Zarazúa 7 ,
• Jania Astrid Saucedo-Martínez 7 &
• Johanna Bolaños-Zuñiga 7  

Part of the book series: EAI/Springer Innovations in Communication and Computing ((EAISICC))

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• International Conference on Computer Science and Health Engineering

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Warehouse management is one of the many companies’ operations that is a main part of the supply chain. Storage takes up between 2 and 5% of the total cost of sales in an organization (Hwang and Cho (Comput Ind Eng 51(2):335–342, 2006)). The storage allocation of products is an activity inside the warehouses that help managing a good flow of the products. It is a complex issue since it depends on many parameters such as the number of spaces, the quantity of products, and the number of rack levels that are in the warehouse, and the resources to move, among other things. When optimizing the flow of operations in the warehouse, good decisions have to be made, and, in this work, through a systematic literature review, different academic papers published between 2005 and 2021 on the SLAP are analyzed and classified according to the solution methodology, objectives, and other characteristics, so that the most used methods in the literature are obtained for this type of problem as well as the parameters that are most taken into account to solve it.

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Lucy Medrano-Zarazúa, Jania Astrid Saucedo-Martínez & Johanna Bolaños-Zuñiga

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Medrano-Zarazúa, L., Saucedo-Martínez, J.A., Bolaños-Zuñiga, J. (2024). Storage Location Assignment Problem in a Warehouse: A Literature Review. In: Marmolejo-Saucedo, J.A., Rodríguez-Aguilar, R., Vasant, P., Litvinchev, I., Retana-Blanco, B.M. (eds) Computer Science and Engineering in Health Services. COMPSE 2022. EAI/Springer Innovations in Communication and Computing. Springer, Cham. https://doi.org/10.1007/978-3-031-34750-4_2

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ERProof » SAP PP (Production Planning) » SAP PP Training » SAP Storage Location

SAP Storage Location

Organization levels are defined in SAP to represent the legal or the organizational views of a company. Defining the organization level is a key element in any SAP implementation project. First, we need to analyze the structural and process organizations within the company where SAP is going to be implemented. Then these elements are mapped with the SAP organization levels. It is important to get the organization level definition done accurately in the first attempt. This is because it is difficult to change this assignment once done.

There are mainly five organizational levels in SAP. These are:

• Company code
• Storage location
• Purchasing organization / purchasing groups

Out of these, storage location is a key organizational level. Storage location is an organizational unit which differentiates material stocks within a plant. In SAP, inventory management is done at storage location level.

Storage location is assigned to a plant when the organization structure is defined. Storage location is defined by means of four-character alphanumeric key. This key is unique for the plant. This means that a plant can have multiple storage locations, but each storage location can only be assigned to one plant. Within the client, same storage location key can be used but not within a single plant. Physical inventory is also carried out at storage location level.

A storage location can be physical or virtual. Raw material store is an example for a physical storage location. Scrap storage location can be taken as an example for a virtual storage location. It is not possible to give a capacity for a storage location. If we want to give a capacity, it can be done in SAP warehouse management.

Define New Storage Location

New storage locations can be defined in customizing. To create a new storage location, follow the below IMG path (transaction SPRO ).

IMG -> Enterprise Structure -> Definition -> Material Management -> Maintain Storage Location

We can input the transaction code OX09 and directly go to the storage location definition screen. Before defining the storage location, first we need to select the plant which the storage location is associated with. This is mandatory because as mentioned earlier, storage locations are assigned to a plant. Once the plant is entered, we can see the storage locations which are already defined for the given plant, if there are any.

To create a new storage location, click on the “new entry” button. Now, enter the four-digit alphanumeric code which we want to use with the storage location. We can also give a description for the storage location. Example: “Finished Good Store”.

Next, click on “addresses of storage locations”. Next, click on “new entry” button. A new screen will open. In this screen we can define further details of the storage location. If there is an address for the storage location, we can enter it here. We can also enter the search terms, communication methods such as email, mobile number, and fax. These details are not mandatory. Once the details are entered click on save button. Now the new storage location will be added to the plant. This concludes the storage location definition.

Did you like this tutorial? Have any questions or comments? We would love to hear your feedback in the comments section below. It’d be a big help for us, and hopefully, it’s something we can address for you in the improvement of our free SAP PP tutorials.

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Define Storage Location in SAP S/4Hana

What is storage location.

Storage location is a physical location within a plant where the materials are stored and managed. Storage locations in SAP S/4 Hana can be defined based on stock ownership, types of materials, etc.

Storage location is the lowest organizational unit of inventory management without implementation of SAP EWM in SAP S/4 Hana.

Storage Locations in SAP Hana – Scenarios

• One plant can have many storage locations as per requirements of an organization, but one storage location can be assigned to only one plant
• If you are not using SAP Extended Warehouse Management EWM, then you can assign one ore more storage locations to plant
• Storage locations are defined for a specific plant during creation of plant, so separate assignment of storage location to plant not required.
• In SAP EWM and WM, use one storage location, then you are allowed to create multiple warehouses under the storage locations.

How to Define Storage Location in SAP S/4 Hana

You can maintain storage locations in SAP S/4Hana by using the following configuration steps

• IMG Path: Enterprise Structure -> Definition -> Materials Management -> Maintain Storage Location
• Transaction Code: Ox09

By using IMG path or transaction code, you can navigate to storage location definition screen in SAP Hana System.

Step 1: From SAP Easy Access screen, enter sap transaction code “OX09” in the SAP command field and enter to continue.

Step 2: On determine work area entry screen, you need to specify the work area or plant for which you want to maintain the storage location in SAP S/4 Hana.

Step 3: In the next screen  – change view “storage locations” overview, click on New Entries option to maintain new storage location in SAP Hana system.

Step 4: Storage location is defined with 4 character alphanumeric code. update the following details.

• Sloc : Enter the 4 digits key that define storage location in SAP Hana system.
• Description : Enter description of storage location.

Step 5: After providing the storage location key and description, you need to maintain addresses of storage locations. To update the address for storage location- select the storage location and double on the Addresses of storage location in the dialog structure of left side.

Step 6: Click on New Entries option and enter the number for a storage location address and click address option to maintain the address details for storage location.

Update the required details and click on save option to save the configured details of storage location in SAP S/4Hana system.

Successfully we have created storage locations in SAP Hana.

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• ❯ Maintain Storage Location in SAP

How to Maintain Storage Location in SAP

What is Storage Location in SAP?

Storage location is the sub-division of plant where the stocks are physically stored and maintained within a plant . Each storage location can have its own address within a plant.

• It is required to maintain at least one storage location for one plant.
• One plant can have number of storage locations.

How to define storage location in SAP

You can configure storage location by using one of the following navigation method.

• Transaction code: – OX09
• Menu path: – SPRO > IMG > Enterprise Structure > Definition > Material management > Maintain Storage Location.

Step 1) Enter T-code “OX09” in the SAP command field and enter.

Step 2) Now you are prompted to enter the plant key, update the plant code in the given work area field as shown below and press enter to continue.

Step 3) On change view “storage locations” overview screen, click on new entries button to define the new storage locations as per requirements.

Step 4 ) On new entries storage location screen, update the following details.

• SLoc: – Enter the four digits key that identifies the storage location in SAP.
• Description: – Update the description of storage location.

Step 5) Now select the storage location key and click on address of storage location in the dialogue structure.

On change view addresses of storage locations overview screen, click on new entries button to update a number for the storage location  address.

Update the number in the field No, you can update up to three characters. After updating No, press enter to continue and you are directed to another screen for the entry of secondary information.

Update the required details like details address with telephone no, city, etc.

After updating all the required details, click on save button and save the configured storage location details.

Successfully we have maintained storage location in SAP systems .

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