Order stock, also known as stock on order, is an important parameter in warehouse management that describes the stock level below which a reorder or replenishment is triggered.

Companies use stock on order to ensure that they have sufficient stock to guarantee the continuous availability of products or materials. When the stock of an item or product reaches or falls below the predefined order stock, a replenishment order is automatically triggered.

Order stock levels are determined based on various factors, including average demand, delivery times, safety stock levels and production capacity. Companies must ensure that order levels are set to meet demand without accumulating too much stock or increasing the risk of shortages.

Effective inventory management requires continuous monitoring and adjustment of order levels to account for changes in demand, delivery times or other relevant factors. Modern inventory management systems and tools allow companies to automatically calculate and update order levels based on real-time data and forecasts.

By optimizing order inventory, companies can reduce their warehousing costs, improve delivery capabilities and increase the efficiency of their overall supply chain processes. A well-managed order inventory helps companies respond flexibly to changing market demands while reliably meeting customer needs.