Inventory Behaviour for in-stock items from pre-orders

In HotWax, when you go to the product inventory view page for any item you will find the following fields:

ATP:

ATP refers to the quantity of inventory that is available to a customer. This value is sync with Shopify inventory with the real time webhook call.To derive ATP, retailers must deduct inventory that is not available to sell from the QOH.

QOH:

Quantity on Hand is the physical quantity of an item in stock. QOH is generally calculated for a product that is in stock at the warehouse or the store. Retailers may also want to look at QOH for a product at all locations, as they can have multiple warehouses and store locations. In that case, the sum of quantities of a given product across all locations represents the QOH of a product at the company level.

Excluded Facilities ATP:

Facilities that are temporarily unable to participate in the fulfillment of online orders due to a number of reasons, including insufficient labor, natural and man-made disasters or Holidays

As soon as these scenarios change, the inventory at these facilities becomes available for online orders again.

Excluded ATP:

It includes all the unsellable inventories. Unsellable inventories is the inventory present in reserved quantities, safety stock, threshold, orders in the brokering queue and excluded facilities ATP.

Online ATP:

It is the inventory available on shopify for Online Orders.

Pre-order or Backorder queue:

As pre-orders or back-orders are taken, it is understood that they won’t be fulfilled till the shipment of the purchase order arrives. Therefore, in HotWax these orders are “parked” in a separate queue called” pre-order parking” or “backorder parking”.

For example, consider a purchase order whose inventory will arrive on 02-01-2023. For this PO, pre-orders start to be accepted on the date 12-25-2022. So from 12-25-2022 until 02-01-2023, these pre-orders or backorders will sit in pre-order or backorder parking.

Currently, if an item’s pre-order or backorder queue is not cleared, HotWax will push the online ATP for the item to 0, so that the merchandiser has total control over future inventory management in fulfillment of pre-orders and backorders.

Based on this logic say for any product, the available inventory is 76 in HotWax, and 36 orders in the backorder queue, HotWax will push online ATP to zero, while the remaining 76 inventory will be moved to excluded ATP.

Considering that no ATP exists for this item currently, HotWax considered the item to be in the HotWax backorder category since there is an active PO against it. As a result, new orders were placed with backorders for this item.

Since the existing logic will show incorrect inventory and pre-orders/backorders in ,we have added a new feature wherein going forward only the number of orders present in the pre-order or backorder queue will be excluded from online ATP in HotWax and rest will be pushed to take normal purchasable orders.

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