Odoo Inventory & Warehouse Setup: From Zero to Production

Inventory Module Overview

Odoo Inventory is a double-entry inventory system: every stock move has a source and destination location. This design ensures complete traceability — you always know where products came from and where they went.

Core Concepts

Setup Steps

1. Warehouse Configuration

Inventory → Configuration → Warehouses

• Warehouse Name: "Main Warehouse"
• Short Name: "WH" (used in location codes)
• Address: Physical address for shipping labels

2. Location Hierarchy

WH (Main Warehouse)
├── WH/Input         (Receiving area)
├── WH/Quality       (Quality control zone)
├── WH/Stock         (Main storage)
│   ├── WH/Stock/Zone-A  (Zone A shelves)
│   ├── WH/Stock/Zone-B  (Zone B shelves)
│   └── WH/Stock/Zone-C  (Cold storage)
├── WH/Packing       (Packing area)
└── WH/Output        (Shipping area)

3. Routes

Routes define the flow of goods:

• Receive in 1 step: Vendor → Stock (simplest)
• Receive in 2 steps: Vendor → Input → Stock (with quality check)
• Receive in 3 steps: Vendor → Input → Quality → Stock (full inspection)
• Deliver in 1 step: Stock → Customer
• Deliver in 2 steps: Stock → Packing → Customer
• Deliver in 3 steps: Stock → Pick → Pack → Ship

4. Product Configuration

# Product tracking options:
# - No tracking: bulk items (screws, paper)
# - By Lot: batch tracking (food, chemicals)
# - By Serial Number: individual tracking (electronics, equipment)

# Product type:
# - Storable: tracked in inventory (physical goods)
# - Consumable: not tracked (office supplies)
# - Service: no physical stock

5. Reordering Rules

Inventory → Operations → Replenishment

# Reordering Rule:
# Product: Widget A
# Location: WH/Stock
# Min Quantity: 50      (trigger replenishment below 50)
# Max Quantity: 200     (order up to 200)
# Route: Buy            (create purchase order)
# Vendor: Acme Widgets  (preferred vendor)

6. Barcode Scanning

• Enable Barcode module
• Configure product barcodes (EAN-13 or internal codes)
• Use web-based barcode scanner or USB scanner
• Operations: scan to receive, pick, pack, ship

Multi-Warehouse Operations

• Inter-warehouse transfers with automatic replenishment
• Warehouse-specific reordering rules
• Cross-docking: receive and ship without stocking
• Dropship: vendor ships directly to customer

Inventory Valuation

• Standard Cost: Fixed cost per unit (manufacturing)
• Average Cost (AVCO): Running average of purchase prices
• FIFO: First purchased units are valued first

Common Mistakes

• Wrong product type — Using "Consumable" for products you need to track
• No reordering rules — Stockouts because manual ordering
• Too complex routes — Start with 1-step receive/deliver, add steps when needed
• Ignoring inventory adjustments — Physical counts diverge from system over time

DeployMonkey + Inventory

DeployMonkey's AI agent configures Odoo Inventory based on your warehouse layout and business requirements. Describe your warehouse structure and product types, and the agent sets up locations, routes, reordering rules, and operation types.