Inventory reservation
An inventory reservation assigns a quantity to an order or purpose. It becomes unavailable for other operations even though it has not been shipped.
What is an inventory reservation?
An inventory reservation assigns a quantity to a specific order or purpose so that it cannot be freely allocated again. It is distinct from physical picking and shipping. Timing depends on the method: Odoo describes reservation at confirmation, manually or before a scheduled date, for example.
A fictional office supplier plans to reserve 3 desk organisers from 8 freely available units for order O-91 after internal order confirmation. In this example, 8 units remain physically at the location, while 8 - 3 = 5 are free for other orders. If the order is cancelled before picking and shipping and there are no other inventory changes, the reservation should be released; 8 units are then free again. The planned trial checks this assignment and release against the same order. Merely adding an item to a basket does not count as a reservation in this example.
Sources
Related terms
- Inventory managementInventory management brings quantities, locations and states together. Physically present goods are not automatically available for further sales.
- Order management systemAn order management system links information and processing steps for an order. Individual lines can remain in different states.
- DropshippingWith dropshipping, a supplier sends the sold item directly to the customer. Shop orders, supplier orders and updates need to match.
- FulfilmentFulfilment covers the operational preparation and shipping of ordered goods. Picking, packing, handover and delivery need traceable events.
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