Why These Rules Matter
Three sets of rules decide how inventory moves through a warehouse. Picking rules choose which stock fills each order. Putaway rules decide where incoming stock is stored. Replenishment rules keep pick locations stocked, so pickers are not sent to an empty shelf. Set them well and you get:
- Less walking, because pickers follow a sensible route through well-stocked locations
- Fewer short picks, because pick locations are refilled before they run out
- Older dates out first, so stock does not expire on the shelf
- Tidier locations, because partial quantities are cleared and products are kept together
Picks and replenishment moves arrive on the handheld as work, highest priority first. You choose whether Rocket assigns the work, a supervisor assigns it, or operators choose from a list.
Choosing Which Stock to Pick
When an item is stored in more than one location, a picking rule decides which location fills the order. Three rules cover most warehouses:
Rules can be combined. A common approach is to try one rule first and fall back to another when it cannot fill the pick.
Rocket has all three: FEFO Least Quantity, Best Quantity, and Least Quantity, its pick-to-clean rule. You turn rules on and set their order, and if the first rule cannot fill a pick, Rocket moves to the next for the rest. With no rule set, Rocket picks the earliest-expiring stock first, then the smallest quantity.
Orders carry a priority, and a higher-priority order can take stock from a lower-priority one. The Held Orders view shows every order that cannot ship and why, such as out of stock or blocked by a higher-priority order, and Rocket can alert chosen people when an order loses its stock.
Planning the Pick Path
A good pick path follows the layout of the warehouse, not the order of the lines on the order. A typical route:
- StartAt the pick start point, such as packing or the dock.
- Forward pickFast movers in easy-reach locations.
- ReserveMedium movers in pallet rack.
- BulkLarge quantities from overstock.
- FinishBack at packing or staging.
Keep fast movers close to packing and shipping, and number locations so that walking them in order is also the shortest sensible route.
Every location has a pick-flow value, and Rocket directs pickers location by location in that order, onto a pallet that is then dropped in a staging lane. Our warehouse location setup guide shows how to number pick flow along a serpentine path.
Putaway Strategies
Putaway rules decide where incoming stock is stored, which shapes how far pickers walk later and how well space is used.
| Strategy | How It Works | Best For | Key Benefit |
|---|---|---|---|
| Fixed Location | Each SKU has a dedicated home location | Stable product lines and steady volumes | Easy to learn where things are |
| Random (Chaotic) | Stock goes to any suitable open location | Many SKUs with changing volumes | More use of available space |
| Velocity-Based | Fast movers near the pick face, slow movers further back | ABC-classified inventory | Less pick travel |
| Size-Based | Stock goes to locations that fit it | Mixed product sizes | Fewer wasted or overfilled locations |
Rules Worth Building In
- Keep heavy items low, at floor or first-level locations.
- Keep incompatible products apart, such as chemicals and food.
- Keep the same product together where you can, so later picks come from fewer places.
- Keep lots separate, so a recall leads to the right location.
Forward Pick, Reserve, and Overstock
The operator scans the destination, and Rocket checks it before accepting the put. The location must accept the item’s class, a single-item location cannot take a second product, lots of the same product are kept apart, and license-plate locations stop at their pallet limit.
Rules like keeping heavy items low or chemicals away from food are set up as item classes, such as a Heavy class limited to floor-level locations. Items that need inspection are received straight onto a hold and routed to an inspection location, and one received line can be put away to several locations.
Setting Replenishment Thresholds
Replenishment keeps forward-pick locations stocked, so pickers are not sent to an empty location. Set it up in three steps:
- Find your fast moversUse pick frequency and volume to decide which products earn a forward-pick location.
- Assign pick facesGive each one an easy-reach location close to packing.
- Set thresholdsA critical level, a warning level, and a maximum for each pick face.
| Threshold | Purpose | Typical Starting Point | What It Triggers |
|---|---|---|---|
| Critical | Prevent a stockout | 1–2 days of demand | Refill now |
| Warning | Plan the refill | 3–5 days of demand | Create a replenishment task |
| Maximum | Prevent overfilling | 7–14 days of demand | Refill up to this level |
Treat these as starting points and adjust for supplier lead times and how much demand varies.
Each forward-pick location carries a warning level, a critical level, and a maximum for the item it holds, and thresholds can be copied from one site to another. To choose the products that earn a pick face, the Fast Movers view ranks products by order count and quantity over the last 7, 30, or 90 days or the year to date.
How Replenishment Runs
Automated replenishment usually follows this cycle:
- MonitorThe system tracks the quantity in each pick location.
- TriggerThe quantity drops below the warning or critical level.
- CalculateThe refill quantity is the maximum minus what is there now.
- SourceThe system finds stock in reserve or overstock.
- GenerateA replenishment task is created with a priority.
- ExecuteAn operator moves the stock to the pick location.
When a pick location drops below its warning level, Rocket creates the replenishment move. At the critical level, the move is raised in priority. When an operator starts it, Rocket names the storage location to pick from and the quantity: enough to refill to the maximum, or the rest of that storage location. Moves that are no longer needed are cleared away.
Tuning Over Time
Common Pitfalls
- Thresholds set too low, which causes short picks
- Maximums set too high, which wastes pick-face space
- Ignoring seasonal demand
- Never revisiting the settings
Keeping It in Balance
In the Command Center, one click rechecks replenishment work against current stock, adding what is missing and clearing what is not needed. When a pick face needs attention now, you can create a directed move at a chosen priority.
Measuring What Matters
Track a few measures each month, and change one setting at a time so you can see what helped:
- Pick-face fill rate: how often a picker finds stock where expected
- Short picks and stockouts: lines that could not be filled from the pick face
- Replenishment time: how long refills take from trigger to done
- Pick productivity: lines or units picked per hour
The Held Orders view lists every order that cannot ship, with the reason and how long it has waited. SKU Health scores each product by how many orders it blocked, and the transaction history records who did each move and how long it took.
Setting Up the Rules in Rocket
Once the rules are decided on paper, setup in Rocket follows this order:
- Choose your pick rulesTurn on FEFO Least Quantity, Best Quantity, or Least Quantity, and set the order they are tried in.
- Set up forward-pick locationsMark them as forward pick and set the warning, critical, and maximum levels for each item.
- Limit locations by item classSo each location only accepts the products it suits.
- Choose how work is assignedBy the system, by a supervisor, or chosen by operators.
- Walk it before go-liveRun a few real picks and replenishments end to end, and adjust anything that feels wrong.
During implementation, our team trains yours on this setup. See how order management works in Rocket.