Inventory reservation, also known as stock reserving, is an essential process in inventory management that is used to reserve materials, goods or finished goods for an existing or anticipated short-term demand.

This process allows companies to ensure that they have sufficient stock levels to cope with unexpected or seasonal peaks in demand while improving delivery capabilities. By reserving stock, companies can ensure that they can supply their customers on time without having to go through costly procurement or production processes.

Inventory reservation is used in various industries and business sectors, including retail, manufacturing, logistics and distribution. Companies use advanced planning tools and systems to forecast demand and reserve the required stock accordingly.

An important aspect of inventory reservation is the accurate planning and calculation of reservation quantities. Companies must consider current demand, inventory levels, lead times and other relevant factors to ensure that reserved inventory levels are sufficient to meet demand without holding excess inventory.

In addition, inventory reservation requires effective communication and collaboration between different departments and stakeholders in the organization, including purchasing, warehousing, distribution and production, to ensure that reservations are properly managed and coordinated.

Overall, inventory reservation allows companies to improve their ability to deliver and increase customer satisfaction while optimizing inventory levels. By implementing effective reservation strategies, companies can strengthen their competitiveness and ensure long-term business success.