Guides on warehouses and distribution

How to know what is in stock and where it lies: bin locations, receiving and picking, stocktaking without stopping work, and orders that reserve goods instead of promising what is already gone.

All guides on this topic Found: 3

Guide

Reserved vs available stock: stop selling what you do not have

Reserved stock is on the shelf but already promised to confirmed orders; available stock is what is left to sell. The usual formula is available = on hand − reserved − blocked, where blocked covers damaged or quarantined goods. Reserve when an order is confirmed, in the warehouse it will ship from, release reservations when orders are cancelled, and promise customers only the available quantity, never the on-hand figure.

6 min read

Guide

ABC analysis of inventory: which items deserve the most attention

ABC analysis sorts inventory items by their share of annual consumption value, usually units used or sold times unit cost. Class A is the small group that makes up roughly 70–80% of the value, B the next 15–25%, and C the long tail of many items with the remaining few percent. Each class then gets its own rules for counting, reordering and review.

6 min read

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