Fixed vs Floating Bin in Business Central Warehouse Management

Fixed Bin

Feature	Description
Definition	A bin that is permanently assigned to a specific item.
Use Case	Used for fast-moving or frequently stocked items.
Behavior	When receiving or picking items, Business Central prefers the fixed bin for that item, if available.
Setup	Assigned in the Item Unit of Measure or Bin Contents page with the Fixed check box marked.
Example	Bin A01 is always used to store Item 1001. Even if there’s space in other bins, the system will prioritize A01.

Floating Bin

Feature	Description
Definition	A bin that is not permanently assigned to any specific item.
Use Case	Ideal for overflow, random storage, or temporary stock placement.
Behavior	The system dynamically assigns items to available bins based on availability, capacity, or rules.
Setup	No “Fixed” flag is marked for these bins.
Example	Bin B15 might hold Item 1001 today and Item 2003 next week. It depends on space and warehouse activity.

Summary Table

Criteria	Fixed Bin	Floating Bin
Permanence	Always reserved for one item	Used by any item temporarily
System Preference	System defaults to this bin	System uses it as needed
Setup Required	Yes (Fixed checkbox enabled)	No special setup
Best For	Fast movers, regular stock	Overflow, irregular stock
Bin Contents Stability	Predictable	Dynamic

Scenario Setup

Location Code: WAREHOUSE
Item No.: 1001 (Widget)
Bins in Warehouse:
- A01 → Marked as Fixed for Item 1001
- B15 → A Floating bin (not fixed to any item)
Stock Levels:
- A01 (Fixed bin): 5 units of Item 1001
- B15 (Floating bin): 10 units of Item 1001
A Warehouse Pick is created to fulfill a Sales Order of 12 units of Item 1001.

How Business Central Picks Items

Step-by-Step Behavior

System Checks Fixed Bin First:

- Bin A01 is fixed for Item 1001.
- It has 5 units, so Business Central allocates 5 units from A01.
System Needs 7 More Units:
- Since A01 doesn’t have enough, Business Central checks other available bins.
- It finds B15 has 10 units.
System Allocates from Floating Bin:
- Business Central allocates the remaining 7 units from B15.
Warehouse Pick Document is generated:
- Line 1: Pick 5 units from Bin A01 (Fixed)
  Line 2: Pick 7 units from Bin B15 (Floating)

Why This Matters

- Fixed bins ensure consistency for warehouse staff (they know where to find common items).
- Floating bins offer flexibility and optimize space usage by allowing overflow or random placement.
- Business Central uses a bin ranking system and fixed bin priority logic to balance structure and efficiency.

💡What you have learned in this post:

Q: What is a Fixed Bin in Business Central?

A: A Fixed Bin in Business Central is a designated storage location permanently assigned to a specific item. It helps maintain consistent inventory organization and improves picking accuracy.

Q: What is a Floating Bin in Business Central?

A: A Floating Bin in Business Central is a flexible storage location that can hold various items at different times. It allows for dynamic space utilization and is ideal for fast-moving or temporary inventory.

Q: When should you use Fixed vs Floating Bins?

A: Use Fixed Bins for stable, high-volume items with consistent demand. Floating Bins are suitable for irregular items or temporary storage needs, enhancing flexibility in dynamic warehouses.

Business Central : Difference between Fixed and Floating Bin in Warehouse Management