01
Start with the question
On hand describes physical stock at a location. Available describes what can be sold. Committed and Unavailable explain why part of On hand cannot currently be sold.
02
Keep Incoming outside Available
Incoming goods are expected but have not yet been received. They support planning, not immediate fulfilment.
Business example
Thirty lamp bases are on hand, twenty available
Eight are committed and two are unavailable, leaving twenty available for new sales. Twelve more are incoming but not yet on the shelf.
| On hand | Committed | Unavailable | Available | Incoming |
|---|---|---|---|---|
| 30 | 8 | 2 | 20 | 12 |
- Read all states at one location
- Do not count incoming units as available
- Use the state that matches the decision
Sources
Further reading
Questions, answered
Frequently asked questions
What should I check first?
On hand describes physical stock at a location. Available describes what can be sold. Committed and Unavailable explain why part of On hand cannot currently be sold.
What result should I aim for?
Understand On hand, Available, Committed, Unavailable and Incoming without treating them as interchangeable.