6.3 Storage Zones & Segregation Rules

Inventory segregation is not about organization; it is about risk containment. A "rejected" flag in the ERP is useless if the physical reel is sitting on an open shelf next to good stock. Under production pressure, operators will pick whatever is accessible. To prevent this, you must enforce a strict "Status = Location" policy. If the system status changes, the physical location must change immediately.

The Segregation Map (Zone Logic)

Define your warehouse geography by strict status boundaries. Never mix statuses in the same bin.

Zone 1: Main Stores (Available)

• Content: Only materials with status PASS / Unrestricted.
• Access: Open to Picking/Kitting staff.
• Logic: If a part is here → Then it is ready for the SMT line. No further checks required.

Zone 2: Incoming & Inspection (Hold)

• Content: Material just received or awaiting QC verification.
• Status: inspection_hold or dock_to_stock.
• Logic: If QC has not signed off → Then material stays here. This zone must be physically separated from Main Stores (e.g., distinct racking color or floor marking).

Zone 3: The Quarantine Cage (Blocked)

• Content: Suspect counterfeit, failed inspection, mismatched revisions, or damaged freight.
• Status: QUARANTINE / BLOCKED.
• Requirement: Physical barrier required (cage/locked cabinet). "Do Not Touch" tape on the floor is insufficient.
• Logic: Access restricted to Quality and Senior Warehouse staff only.

Zone 4: The Morgue (RTV & Scrap)

• Content: Confirmed dead stock awaiting disposal or return to vendor.
• Status: RTV_PENDING or SCRAP_PENDING.
• Logic: Segregate clearly to prevent accidental "return to stock." Scrap must be destroyed/defaced before leaving this zone to prevent dumpster diving/gray market reentry.

Visual Control & Labeling Standards

System status is invisible to the human eye. Use color-coded visual management to bridge the gap.

• Green Label / Sticker: ACCEPTED. Applied only after receiving/QC is complete.
• Yellow Label / Tape: HOLD. Applied to anything awaiting a decision (Engineering query, QC check).
• Red Label / Tag: REJECT/QUARANTINE. Must be applied over the picking label to prevent scanning.
• Purple/Blue (Optional): Customer Supplied Material (CSM). Use this if contracts require CSM to be physically segregated from house stock to prevent commingling.

Pro-Tip: Do not rely on small status text. Use large, colored "license plate" magnets or bin-front placards for shelves. An operator should see "RED" from 5 meters away.

The "Full Cage" Escalation Protocol

A common failure mode occurs when the Quarantine cage overflows. The lazy solution is to put rejected boxes on the nearest open shelf in Main Stores "just for a day." This is a guaranteed escape.

• Scenario: Quarantine Cage is at 100% capacity.
• Action A (Short Term): Designate a temporary overflow pallet. Wrap it entirely in RED shrink wrap. Post a "QUARANTINE OVERFLOW" sign.
• Action B (Root Cause): The cage is full because decisions are being delayed.
  • If items sit > 30 days → Then trigger mandatory Material Review Board (MRB) meeting. Force Engineering/Quality to Disposition (Scrap, RTV, or Use-As-Is).
  • If disposition is Scrap → Then execute the destruction immediately to free up space.

Final Checklist