Meaning of Storage and replenishment

Storage and Replenishment

Storage

• This is the physical containment of merchandise while it is awaiting a demand. The storage method depends on the size and quantity of the items in inventory and the handling characteristics of the product or its container.

Replenishment

• In this process, a warehouse employee transfers product from a storage position to a given pick position. 
• Replenishment is carried to ensure that SKUs are removed from the assigned storage area on schedule and in the proper quantity. 
• These SKUs are then placed in the correct SKU stock position to help ensure a constant availability of stock at a given stock position. 
• Replenishment activities include listing SKU positions in warehouses that require replenishment, withdrawing the product from the storage position, and transferring or placing the SKU in the SKU pick position.