Managing your inventory is a vital aspect in handling your business. Regularly monitoring your inventory count can help you identify trends or problems that can arise, enabling you to make adjustments that are in line with your inventory management strategies. This also helps you make informed decisions in your business processes like production, sales, and stock replenishment.
In Stock&Buy, we oversee 3 primary stock measures while managing your inventory levels. In this guide, we will let you know more about each of them.
Total Inventory Quantity
Your total inventory quantity refers to the sum total of all products that are held in stock on your inventory or warehouse. It indicates the individual items that are made available for sale or are already part of an open sales order.
You can check the overview of your total inventory quantity in your account’s Dashboard.
Allocated Inventory Quantity
Your allocated inventory quantity refers to the sum total of all products in your warehouse that you have reserved to your customers. These are promised products that are already part of your open sales orders.
You can find these orders in your Sales module that are set to Allocated or Invoiced. Items that are part of these orders are already committed. The concept of allocating your products helps you avoid overselling.
Available Inventory Quantity
The available inventory quantity refers to the sum total of items that are present in your warehouse which are available for sale. This takes into account the physical on hand quantity of your items minus the allocated or reserved quantities.
Total – Allocated = Available
Knowing your available inventory quantity helps you determine whether you have sufficient inventory to meet your customers’ demands. It will also help in preventing shortages and make sure that you complete your orders within the expected timeframes. It also allows you to allocate your products to different customers, sales channels, or various clients wherein you have contractual agreements.