Inventory Policy Engine

The Inventory Policy Engine is the configurable rule system that controls how the warehouse handles stock. Instead of hard-coding picking methods, putaway rules, and QC requirements into the application, these behaviors are driven by Inventory Policy records — one per client, zone, item group, or combination thereof.

What It Does

The Policy Engine provides configurable control over:

Decision	Without Policy Engine	With Policy Engine
Picking method	Hard-coded FIFO	FIFO / FEFO / LIFO / Manual per client
Putaway zone	Any available bin	Preferred zone per item group
QC on receipt	Always on / always off	Per client, per item category
Lot tracking	System-wide setting	Per client, per item
Temperature compliance	Hard-coded zones	Flexible per policy
Expiry management	Not enforced	FEFO enforced for cold chain

This means you can run:

• TechGear Inc on FIFO with no lot tracking, no QC
• FreshFoods Co on FEFO with mandatory lot tracking, temperature QC on receipt
• All clients with a system default that covers anything not explicitly configured

...all within the same warehouse and the same application.

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Resolution Priority

When the system needs to apply a policy (e.g., to allocate stock for a Client Order), it resolves the most specific applicable policy using a 5-tier priority:

| Priority | Matching Dimensions | Example | |----------|--------------------|---------|| | 1 (Highest) | Client + Item Group + Zone | FreshFoods + Food + Cold Store | | 2 | Client + Item Group | FreshFoods + Food | | 3 | Client + Zone | FreshFoods + Cold Store | | 4 | Client only | FreshFoods (all items, all zones) | | 5 (Lowest) | System default | No client set (fallback for all) |

The system always uses the first match going from priority 1 down to priority 5. If no policy matches at any level, the transaction fails with a configuration error.

TIP

Start with a System Default policy (no Client, no Item Group, no Zone) that sets safe defaults. Then add client-specific overrides only where behavior needs to differ.

Resolution Example

Given these policies:

Policy	Client	Item Group	Zone	Picking Method
P1	FreshFoods	Food	Cold Store	FEFO
P2	FreshFoods	Food	—	FEFO
P3	FreshFoods	—	—	FIFO
P4	—	—	—	FIFO (default)

For a FreshFoods order for a Food item in the Cold Store zone, the engine resolves P1 (most specific match). For a FreshFoods order for a non-Food item, it resolves P3.

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Policy Fields Reference

Identification

Field	Type	Description
Policy Name	Data	Unique identifier for this policy
Client	Link → Customer	Scope to a specific 3PL client. Leave blank for system default
Item Group	Link → Item Group	Scope to a specific item group (e.g., Food, Electronics)
Warehouse Zone	Link → Warehouse	Scope to a specific zone
Active	Checkbox	Enable / disable this policy without deleting it
Notes	Text	Description of what this policy is for

Picking Rules

Field	Type	Description
Picking Method	Select	FIFO — First In First Out (oldest batch first) FEFO — First Expired First Out (soonest expiry first) LIFO — Last In First Out Manual — No system allocation; operator decides
Enforce Lot Selection	Checkbox	If Yes, picking must be done by specific lot number
Allow Mixed Lots	Checkbox	If No, a single pick task cannot span multiple batches
Min Expiry Days	Int	Do not allocate stock expiring within N days

Putaway Rules

Field	Type	Description
Preferred Zone	Link → Warehouse	Direct putaway to this zone by default
Fallback Zone	Link → Warehouse	Use this zone if preferred zone is full
Max Fill Percent	Percent	Don't assign a bin above this fill level
Allow Mixed Items	Checkbox	If No, a bin can only hold one item/client
Allow Mixed Clients	Checkbox	Must be No for client isolation (recommended)

Quality Control

Field	Type	Description
QC on Receipt	Checkbox	If Yes, all receivings require QC step before putaway
QC on Dispatch	Checkbox	If Yes, all outbound require QC check before ship
Temperature Check	Checkbox	Record and validate temperature on inbound
Min Temperature	Float	Acceptable minimum arrival temperature (°C)
Max Temperature	Float	Acceptable maximum arrival temperature (°C)

Lot & Expiry Control

Field	Type	Description
Require Lot on Receipt	Checkbox	Lot number must be recorded during Receiving
Require Expiry on Receipt	Checkbox	Expiry date must be recorded for every batch
Expiry Warning Days	Int	Flag stock expiring within N days in reports
Auto-Quarantine Expired	Checkbox	Automatically move expired stock to Quarantine

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Example Scenarios

Scenario 1: FreshFoods Co (FEFO Cold Chain)

FreshFoods stores refrigerated food products that have strict expiry requirements.

Policy Configuration:

Client:             FreshFoods Co
Item Group:         Food
Zone:               (all)
Picking Method:     FEFO
Enforce Lot:        Yes
Allow Mixed Lots:   No
Min Expiry Days:    7
QC on Receipt:      Yes
Temperature Check:  Yes
Min Temperature:    2°C
Max Temperature:    8°C
Require Lot:        Yes
Require Expiry:     Yes
Expiry Warning:     14 days
Auto-Quarantine:    Yes

Effect:

• Every receiving must record lot number and expiry date
• Temperature on arrival must be 2–8°C; out-of-range goes to Quarantine
• QC inspection required before putaway
• Orders always pick the batch expiring soonest first
• Stock expiring within 7 days is not allocated to orders
• Stock reaching its expiry date is auto-quarantined overnight

Scenario 2: TechGear Inc (FIFO Standard)

TechGear stores electronics — no temperature requirements, no expiry dates, standard FIFO.

Policy Configuration:

Client:             TechGear Inc
Item Group:         (all)
Zone:               (all)
Picking Method:     FIFO
Enforce Lot:        No
Allow Mixed Lots:   Yes
QC on Receipt:      No
Temperature Check:  No
Require Lot:        No
Require Expiry:     No

Effect:

• Receivings require no special lot or expiry data
• No QC step — goods go straight to putaway after receiving
• Orders pick the oldest stock first (by receipt date)
• Multiple batches can be picked in a single Pick Task
• No expiry monitoring

Scenario 3: System Default

A catch-all policy for any client or item not matched by a specific policy.

Client:             (blank — system default)
Item Group:         (blank)
Zone:               (blank)
Picking Method:     FIFO
QC on Receipt:      No
Temperature Check:  No
Require Lot:        No

WARNING

Always maintain a system default policy. Without it, any unmatched combination of client/item/zone will cause a configuration error at transaction time.

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Managing Policies

Creating a New Policy

1. Go to Warehouse 3PL → Inventory Policy → New
2. Enter a descriptive Policy Name
3. Set the scope (Client, Item Group, Zone — leave blank for broader scope)
4. Configure picking, putaway, QC, and lot fields
5. Save and Submit

Testing a Policy

Before going live with a new policy configuration, test it:

1. Use Tools → Policy Resolver to input a Client + Item + Zone combination
2. The tool shows which policy would be resolved and what rules would apply
3. Verify the result is what you expect

Deactivating a Policy

To temporarily disable a policy without deleting it:

1. Open the policy
2. Uncheck Active
3. Save

The system will skip this policy during resolution and fall through to the next match.