What are the Different Types of Removal Strategies in Odoo 18?

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One of the key aspects of inventory management in Odoo is the removal strategy, which determines how products are picked and moved within a warehouse.

Odoo 18 offers a comprehensive warehouse management system that allows businesses to efficiently manage their inventory. One of the key aspects of inventory management in Odoo is the removal strategy, which determines how products are picked and moved within a warehouse. These strategies are crucial for optimizing stock levels, reducing waste, and ensuring smooth warehouse operations. Whether you are using Odoo for Small Business or managing a large-scale enterprise, understanding the different removal strategies can help streamline your inventory processes.

Understanding Removal Strategies in Odoo 18

A removal strategy in Odoo defines how stock is taken from the inventory when a sales order is processed or when stock is moved internally. Odoo provides several predefined removal strategies, each suited to different business needs. By selecting the appropriate strategy, companies can improve stock rotation, minimize losses due to product expiration, and optimize warehouse space utilization.

  1. First In First Out (FIFO)

The FIFO (First In First Out) strategy ensures that the oldest stock (based on reception date) is used first. This method is particularly beneficial for perishable goods and industries such as food, pharmaceuticals, and cosmetics. FIFO helps businesses minimize product wastage by ensuring older stock is sold or used before newer stock.

Use Case

  • Businesses dealing with perishable or date-sensitive products
  • Ensuring inventory freshness and compliance with regulatory standards
  1. Last In First Out (LIFO)

In contrast to FIFO, the LIFO (Last In First Out) strategy picks the most recently received stock first. This method is useful when dealing with non-perishable goods where pricing fluctuations make it beneficial to sell newer stock first.

Use Case

  • Industries dealing with commodities affected by price volatility
  • Warehouses with high turnover and rapid restocking
  1. First Expiry First Out (FEFO)

The FEFO (First Expiry First Out) strategy is used primarily for goods with expiration dates. In this method, products with the nearest expiry date are prioritized to be used or shipped first. This strategy is crucial for industries such as pharmaceuticals, food production, and chemicals.

Use Case

  • Ensuring compliance with health and safety regulations
  • Reducing expired product losses
  1. Closest Location Strategy

The Closest Location Strategy ensures that stock is taken from the nearest available storage location. This method improves warehouse efficiency by minimizing picking time and reducing labor costs.

Use Case

  • Large warehouses with multiple storage locations
  • Reducing picking time and improving order fulfillment speed
  1. Custom Removal Strategies

Odoo allows businesses to define custom removal strategies to fit unique operational needs. By using Odoo’s advanced warehouse settings and customization capabilities, companies can create tailored solutions to enhance inventory workflows.

Implementing a Custom Removal Strategy in Odoo 18

For businesses with specific warehouse management requirements, Odoo allows customization of removal strategies. Below is a sample Python code snippet to implement a custom removal strategy in Odoo 18.

Custom Removal Strategy Code in Odoo 18

from odoo import models, fields, api

 

class CustomRemovalStrategy(models.Model):

    _inherit = 'stock.rule'

 

    custom_removal_strategy = fields.Selection([

        ('oldest_lot', 'Pick Oldest Lot First'),

        ('specific_location', 'Pick from Specific Location')

    ], string="Custom Removal Strategy")

 

    @api.model

    def _run_pull(self, procurements):

        for procurement in procurements:

            if self.custom_removal_strategy == 'oldest_lot':

                procurement.move_dest_ids.filtered(lambda m: m.lot_id and m.lot_id.create_date)

                .sorted(lambda m: m.lot_id.create_date)[0]

            elif self.custom_removal_strategy == 'specific_location':

                procurement.move_dest_ids.filtered(lambda m: m.location_id == self.location_id)

        return super(CustomRemovalStrategy, self)._run_pull(procurements)

Explanation of the Code

  • The code inherits from stock.rule to modify removal strategies.
  • It defines a new field custom_removal_strategy, allowing selection between picking the oldest lot or a specific location.
  • The _run_pull function is overridden to implement the selected strategy before calling the default behavior.

Conclusion

Choosing the right removal strategy in Odoo 18 is crucial for effective warehouse management. Whether you opt for FIFO, LIFO, FEFO, or a custom strategy, Odoo provides flexible solutions to optimize inventory flow. Implementing the correct strategy can enhance efficiency, reduce losses, and improve overall business operations.

If you need expert guidance on configuring removal strategies or customizing Odoo to fit your business needs, hire an Odoo consultant today to streamline your inventory management effortlessly!

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