How much? Where?

Understanding the nuances between quantity on hand, quantity allocated, and quantity on order is pivotal for efficient inventory management.

Quantity on hand refers to the amount of a product physically available in stock, ready for immediate sale or use.

On the other hand, quantity allocated designates the portion of inventory already promised or earmarked for specific orders, ensuring customer demands are met but potentially limiting availability for other transactions.

Quantity on order indicates the amount of stock that has been requested from suppliers but has yet to be delivered, reflecting future inventory levels.

Balancing these three metrics is essential for businesses to optimize their inventory levels, ensuring both customer satisfaction and operational efficiency.

​- Chad