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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Manufacturing: portion...
Small and medium business | Business Central, N...
Suggested Answer

Manufacturing: portion picking

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Posted on by October Sky 673
In our manufacturing operations, we have a need to cut partial cuts of metal for use in the operations at hand. For example, a routing might need 1 metre from a standard 3 metre length of angle iron. Similar, with sheet metal where it needs a certain length and width. Setting up the BoM is fine by using the calculation formula. However, what is the optimal process for the operators to obtain the material. Should the sheet metal and angle iron with their standard/base Uom be placed in the production bins where the operators would simply cut off the lengths/measures required and leave the remainder back in the bin? Would such stock be actually placed in Production bins or very close to Production bins and should a warehouse pick be in place to move it to the Production bins every time it is required? It almost feels like a lot of work to create a warehouse pick for a short physical move and then to place the remainder back in stock again.  Perhaps the item should have a minimum quantity kept at the Production bins at all times while the having the bulk of it in the warehouse - but is a warehouse pick still required.
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Dynamics 365 Business Central
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  • Suggested answer
    Montassar Krichi Profile Picture
    Montassar Krichi 231 on at
    Hi,
    This is a typical Lean problem, and you have to adapt your configuration to be lean also.
     
    Recommended Best Practice (Lean + Accurate)
    🔹 1. Keep full-length stock in Warehouse bins
    • Bulk stock of angle iron, sheets, rods → stored in Warehouse Bins
    • These are tracked and picked via warehouse documents (picks/movements)
    🔹 2. Maintain a buffer/minimum quantity in Production bins
    • Maintain a minimum quantity in the Production bin near the machine (e.g., “CUT-STOCK” bin)
    • This is treated like a kitting area or preparation zone
    • Replenish via Warehouse Movement or Internal Movement when below threshold
     Use Bin Replenishment Policies in BC for this (Bin Content → Min/Max Qty)

    What happens operationally:
    1. Warehouse team picks/cuts (or moves full pieces) to the Production Bin when replenishment is needed
    2. Operators take the full-length item, cut the required amount (e.g., 1m), use it
    3. The offcut (e.g., 2m left) stays in the bin and is reused next time
    4. The production order only consumes the exact required quantity (e.g., 1m), not the full piece
    5. The remaining 2m is still in the bin and part of inventory
     Technical setup in Business Central
    Element Value
    Item UoM Base UoM = Meters or Square Meters (not “pieces”)
    BOM Formula Use “Length per” or “Area per” formula for metal
    Routing Pulls correct amount via consumption
    Bins Use Fixed Bins in Warehouse + Production Zone
    Replenishment Use Bin Content with Replenishment Method = "Fixed Qty"
    Warehouse Pick?  Not for every cut; only to replenish the buffer bin when needed
     Advantages of this model
    • No need for repeated warehouse picks for every short move
    • Operators work from a ready-to-use stock in the production area
    • Offcuts naturally remain in the bin for reuse
    • Stock accuracy is maintained based on exact consumption in the Prod Order
    • BC handles this with standard features (no mods)

     
  • Suggested answer
    Sohail Ahmed Profile Picture
    Sohail Ahmed 11,169 Super User 2026 Season 1 on at

    Great question — this is a common challenge in discrete manufacturing environments with raw material remnants like sheet metal and angle iron.

     

    Here's a practical approach based on Business Central’s standard manufacturing and warehouse capabilities:

     

    ✅ Suggested Best Practice:

     

    Use a Fixed Production Bin with Minimum Stock:

     
    • Set up your sheet metal/angle iron items with a fixed bin in the production location.
    • Define a minimum quantity using the Bin Contents page to ensure some stock is always available near the production floor.
    • This reduces the need for frequent warehouse picks for small cuts.

    Replenish with Internal Picks or Movement Worksheets:

    • Use Movement Worksheets or Replenishment Policies to move full lengths/sheets from the main warehouse to the production bin in bulk.
    • This avoids frequent picks for every routing requirement and simplifies material handling.

    Scrap or Remnant Handling:

    • Decide whether remnants will be returned to stock, scrapped, or reused.
    • If reusable, you may want to manage cut remnants as separate items or variants (optional customization).
    • Alternatively, just reduce inventory via consumption journaling and manage remnants physically.

    Warehouse Pick Requirement:

    • If you're using Directed Put-away and Pick (WMS), warehouse picks are generally required to move inventory into production bins.
    • If this overhead is too much, consider simplifying the location setup for production materials (i.e., disable WMS in production sublocation or use a staging bin strategy).
     

    🔧 Optional Customization:

     

    If precise remnant tracking is critical, consider custom development to:

    • Track partial usage (e.g., update a custom field for remaining length/area).
    • Automatically suggest bin movements when quantity drops below min.
     
     

    This balances operational efficiency with inventory accuracy. Let me know if you want a visual flow or need help configuring bin policies.

     

    Mark below checkbox to make this answer Verified if it helps you.

  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 99,055 Super User 2026 Season 1 on at
    Hopefully the following discussion can give you some hints.
    Production Orders containing cut-to-length items - cutting plan
     
    Thanks
    ZHU

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