What available, reserved, damaged and days of inventory remaining stand for
Want to understand which steps your inventory goes through? Then you're in the right place!
- There are three different inventory quantities: Available, Reserved or Damaged.
- And one estimate: Days of Inventory remaining
What does it stand for ?
- Available: number of products that are physically stored at the warehouse and that can be assigned to an order.
🆘 The number can be negative: it means there are not enough products at the warehouse to serve all your orders. In this case, orders won't ship until a restocking is done. Meanwhile, you can split your fulfillment to send the available items first.
- Reserved: number of products assigned to orders that are not prepared yet.
Flow: You have 10 products available in your inventory and 0 reserved products. After an order containing 1 product is made, you will have 9 available products and 1 reserved product. Once the order is prepared by the warehouse and ready to leave, you will have 9 available products and 0 reserved product in your inventory.
- The products were received damaged
- The products were returned damaged by the final customer
- Manual regulation at the warehouse when stored products are identified as damaged.
- Products are expired (cosmetics, food).
Days of inventory remaining: Estimate how long your inventory will last based on your average sales by SKU and available inventory
Calculation: Total quantity of items in inventory (Available) divided by the average daily sales, from the last 30 days.
- If a product has a negative available quantity, then its days of inventory remaining value is set to 0
- If a product did not have any sales in the last 30 days (average daily sales = 0), its "Days remaining" value will be N/A (not enough data to make an estimation)
- If a product has a low volume of sales currently but a high number of items in inventory (e.g., new products), the number of Days of inventory remaining will be high. Therefore, the value will be rounded up to +365 days