The following example illustrates how the optimization process works. The storage type search strategy is defined so that it searches for a material first in a picking area and afterwards in a bulk storage area in which full storage units with the same material are stored.

For this example, 350 boxes of a material are to be picked. The material is stored on pallets which contain 100 boxes each.

What Happens in the System Without Optimization?

The system begins by looking for the material first in the picking area. Since the 350 boxes constitute too large an amount for the picking area (due to the control quantity definition in the material master), they are not removed from the picking area.

Next, the system searches for the 350 boxes in bulk storage and finds them there. **Four** full pallets with 100 boxes each are picked since complete removal is generally required for stock removals from bulk storage.

As a result, a partial pallet now exists that contains 50 boxes of the material.

What Happens in the System With Optimization?

As in the previous case, the system first searches for the 350 boxes in the picking area but because of the large amount is "turned away". Next, the system searches for the materials in bulk storage. With optimization, the system rounds the required amount down to the next full storage unit. In this case, the system selects **three** full pallets with a total of 300 boxes (instead of four pallets to include all 350 boxes).

For the remaining 50 boxes, the system "begins the search again" for the required materials. Therefore, the system looks first in the picking area to see if the remaining 50 boxes are available there.

This procedure prevents the system from creating partial pallets unnecessarily and provides optimal management of the picking area.