Allocated Inventory

Allocated units count as on-hand but not as available. Long gaps between allocation and shipment hide inventory that looks sellable in reports but is not.

Is allocated inventory the same as committed inventory?

Yes, most systems use allocated, committed, and reserved interchangeably for units tied to open orders that have not yet shipped. Some platforms reserve at order placement and allocate to a specific warehouse later, so check your system's definitions.

• Available to PromiseThe quantity of a SKU that can still be committed to new customer orders by a given date, calculated from on-hand stock and scheduled receipts minus existing commitments.
• On-Hand InventoryThe total quantity of a SKU physically present in a warehouse or store, including units allocated to orders, on quality hold, or damaged.
• Order Management SystemSoftware that collects orders from all channels, applies routing rules, and sends each order to the right warehouse or store.