Position and Trigger

Inventory Position

Inventory position counts on-hand units, open orders, and backorders together.

highlighted = computed this step

Position formula

Inventory position equals on hand plus on order minus backorders.

position=on hand+on order−backorders\text{position}=\text{on hand}+\text{on order}-\text{backorders}
Position tableInventory position is on hand plus on order minus backorders.position rowson handon orderbackorderspositionexample day812020later100010

Example day

The example-day position is 20.

8+12−0=208 + 12 - 0 = 20
Position tableInventory position is on hand plus on order minus backorders.position rowson handon orderbackorderspositionexample day812020later100010

Later position

The later position is 10.

later position=10\text{later position}=10
Position tableInventory position is on hand plus on order minus backorders.position rowson handon orderbackorderspositionexample day812020later100010

Position note

On-order units count in position because they are already committed to arrive.

position includes open orders\text{position includes open orders}
Position tableInventory position is on hand plus on order minus backorders.position rowson handon orderbackorderspositionexample day812020later100010