1. Business Use Case Examples

After producing or procuring Products, enterprises need to update the Inventory of corresponding Warehouses in real time. When submitting a Sales Order, you can configure the system to reject orders with insufficient Inventory. Upon successful order submission, the system will increase the frozen Inventory of the designated Warehouse to ensure order accuracy and validity. When creating a Shipping Order, you can select different Warehouses for fulfillment, which will reduce the actual Inventory of the shipping Warehouse accordingly. For return processing, you can specify a return Warehouse, and the system will increase the Inventory of that Warehouse.

Insufficient or excessive Inventory is one of the biggest challenges enterprises face during production or operations. Effective Inventory control helps managers efficiently monitor stock levels, maintain optimal Inventory, ensure smooth business operations, and avoid significant cost losses from overstocking or order losses due to stockouts.

2. Detailed Overview of Inventory

2.1 Inventory Inbound and Outbound

• Inventory can only be created by generating an Inbound Order; you cannot directly create Inventory records.
• Inventory quantity adjustments are automatically updated through business documents (e.g., Inbound Orders for returns or Outbound Orders for shipments). Direct editing of Inventory quantities is not permitted.

2.2 Safety Stock

• Once Inventory is enabled, you can set the safety stock level for a Product in its record.
• In order settings, you can configure Inventory display modes. If set to “fuzzy display”:
  • When safety stock is defined, fuzzy Inventory status includes:
    • Out of Stock: Available Inventory ≤ 0
    • Low Stock: 0 < Available Inventory < Safety Stock
    • Sufficient: Available Inventory ≥ Safety Stock
  • When safety stock is undefined, fuzzy Inventory status includes:
    • Out of Stock: Available Inventory ≤ 0
    • Sufficient: Available Inventory > 0
• Out of Stock: Available Inventory ≤ 0
• Low Stock: 0 < Available Inventory < Safety Stock
• Sufficient: Available Inventory ≥ Safety Stock
• Out of Stock: Available Inventory ≤ 0
• Sufficient: Available Inventory > 0