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Stock Commitments

Purpose

Define how future operational demand affects the quantity of stock considered available for other uses.

Scope

Commitments for ingredients, packaging, and bought-in products across stock locations, including relevant shelf-life constraints.

Actors

  • Warehouse staff
  • Purchasing staff
  • Production planners
  • Production supervisors
  • Management users

Stock items, locations, batches, expiry dates, orders, production requirements, Bills of Materials, commitments, and stock movements.

Business Rules

  • STK-COM-001 — Available stock must distinguish physical quantity on hand from quantity already committed to future requirements.
  • STK-COM-002 — A commitment must identify its source requirement, required date, item, quantity, and stock location or allocation context.
  • STK-COM-003 — Stock expiring before the required date must not count as available for that requirement.
  • STK-COM-004 — Actual stock consumption is recorded when production or fulfilment activity occurs, not merely when a commitment is created.

Workflow

  1. Confirmed demand creates or updates a stock requirement.
  2. The system calculates the resulting commitment against suitable stock.
  3. Amendments or cancellations adjust the commitment.
  4. Completion creates stock movement entries and releases or reconciles the commitment.

Validation

Commitment quantities must use the item's defined unit of measure and must reference a valid source requirement and required date.

Permissions

Authorised users may view commitments. Manual overrides, releases, or reallocations require a specific stock-management permission and reason.

Audit & History

Commitment creation, recalculation, release, override, and conversion to actual stock usage must be traceable to their cause and effective time.

Exceptions & Edge Cases

  • An order is amended or cancelled after stock is committed.
  • Stock expires between allocation and the requirement date.
  • Goods expected from a supplier arrive late or in a partial quantity.
  • Multiple requirements compete for insufficient suitable stock.
  • Production records a different actual quantity from the committed quantity.
  • Orders
  • Production
  • Bills of Materials
  • Stock ledger and expiry
  • Purchasing and replenishment
  • Locations

Open Decisions

  • Define exactly when an order creates a commitment.
  • Define whether commitments reserve specific batches or remain calculated quantities.
  • Define allocation priority where suitable stock is insufficient.
  • Define how future-dated cost and quantity changes affect existing commitments.