Inventory Management Systems (IMS) usually have multiple fields for counting inventory. The quantities have different meanings and provide a fuller picture of how many items exist than one field can. Here are 5 common inventory quantity fields:
This is the quantity that you physically have at your location. They may be in a bin, in a replenishment area, in the receiving staging area, the packing staging area, or the shipping area.
This is the amount of items promised. They may be promised to a customer via the Sales Order process. Or it could be promised to an Assembly via a Work Order process.
Available = On Hand - Allocated. This is what you can sell or use to build.
The quantity of items that have been sent to a vendor via the Purchase Order process but not yet received.
The quantity customers ordered but your organization was not able to fulfill.
Other fields may include On Loan, In Repair, In Transit.
An item’s quantities might look something like this:
And here is what it might look like if you have multiple warehouses:
Keeping track of these different quantities is obviously more involved then just tracking one number. However, it provides a more complete picture of your inventory quantities.