Inventory in logistics

Inventory: The value of all stored goods and merchandise

Whether for delivery planning, determining demand due to seasonal fluctuations or reducing lead times in production, inventory is the core element of the warehouse. This refers to all products in stock that are either in the warehouse for picking or in the production facilities.

In order to be able to make solid forecasts, a distinction is made between four types of stock:

Total stock

All stock types of an item, regardless of their current location, are combined in the total stock. This includes goods in the warehouse, goods in distribution and goods currently being transported.

Reserved stock

All inventories that are intended for a specific order (internal/external) are considered "not available".

Locked stock

All inventories that have not yet undergone quality control or other internal processes are grouped together in blocked stock. They are only transferred to the free stock after release.

Free stock

All stocks that are neither reserved nor blocked fall into this category. Such goods do not necessarily have to be "available"; this includes goods that have just been transported or are otherwise tradable.


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