Onorder

On order refers to inventory that has been ordered from suppliers but has not yet been received. It represents outstanding purchase orders or expected deliveries and is used in inventory management to forecast supply, plan replenishment, and inform decision making.

In practice, on-order stock is the quantity tied up in open purchase orders, including expected quantities and dates of arrival. It is distinct from on-hand stock, which is physically available now. It also differs from backorders, which are customer orders that cannot be fulfilled from current stock; on order relates to supplier commitments rather than customer demand.

Key data typically associated with on order includes the supplier, purchase order number, ordered quantity, unit cost, expected delivery date, and the status of the order. When goods are received, on-order decreases and on-hand increases. If a PO is canceled or changed, the on-order figure is adjusted accordingly.

Uses and implications: On-order information helps determine projected availability, calculate safety stock and lead-time demand, and support materials planning and procurement decisions. It can be shown in dashboards and reports as open POs or in-transit stock. Accurate on-order tracking improves service levels and reduces the risk of stockouts or overordering.

Limitations: Lead time variability, partial deliveries, and order changes can complicate forecasting. In some systems, in-transit quantities may be included differently, so definitions of on order can vary by implementation.