INVENTORY & WAREHOUSE OPERATIONS
Inventory
Inventory is the stock of goods or materials held by an operation for sale, production, service or another defined use.
INVENTORY IN PRACTICE
- Identify the stock
- Record location & status
- Track every movement
A WORKED EXAMPLE
1,000 on hand. 850 uncommitted and usable.
A facility holds 1,000 eaches of a SKU. Of these, 100 are on hold and 50 are committed to orders. Under this simplified rule, 850 remain usable for new demand. The other 150 have not necessarily left the building. Keep physical on-hand and available quantities distinct.
WHAT THIS MEANS FOR YOUR QUOTE
Make the requirement explicit
Use the same scope and units when comparing providers. Put the agreed responsibility, included work and exception process into the service description.
Put this term to work. Use the 3PL selection guide to turn these operating requirements into provider checks, and the 3PL RFP guide to document evidence, responsibilities and exceptions.
A LITTLE MORE CONTEXT
Questions about Inventory
Is inventory only finished products?
No. The scope can include raw materials, components, work in process and other stock.
Does on-hand mean available for sale?
No. Holds, reservations, condition and other rules can restrict availability.
Source & example notes
Oracle: on-hand and availability. Further reading on the related controls and terminology. Product documentation describes a particular implementation; it does not establish a universal procedure or service commitment.
Definitions and worked examples are prepared by 3PL Hub. Numbers are illustrative, not provider rates, operating targets or guarantees.
Last updated: · 3PL Hub
