Quantity reserved generally refers to the quantity of raw material that has been picked (i.e. reserved) for a specific order.

There are configuration options to determine exactly when and how these inventory quantities are reserved. One such configuration option reserves inventory quantity for open sales orders within the part’s lead time. This methodology is designed to help manage cash flow. With this configuration option turned on, Cetec ERP will not reserve stock for an order until, based on the leadtime, it is impossible buy stock in time to fulfill that order. This lets you use that stock as demand arises. For instance, if you take the case of a schedule of six orders with monthly releases, Cetec ERP shows the demand for the parts, but waits to reserve the stock until the dates on those last orders approach. Note that these allocation schemes are only relevant for businesses with extremely high volumes.

For job shops, make-to-order operations, or manufacturers, this methodology of reserving inventory quantities do not apply. For those companies, Cetec ERP either: 1. Reserves all material for an order when the order is created (this methodology relies on valid lead times for all raw material and finished goods in question for the order) or 2. Simply relies on the pick of the part to reserve material for an order only when the material is picked (Cetec ERP will always reserve the material if you pick it.)

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