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Glossary of Inventory Terms

ShipHero uses the inventory terms below across the dashboard, reports, and mobile app. Use this list when a quantity, location type, or replenishment setting isn't behaving the way you expect.

Table of Contents

General Inventory Terms in ShipHero

Term Definition
Allocated The number of on-hand units owed to customers for open orders.
Available The number of on-hand units not allocated to open orders. ShipHero pushes this quantity to any connected sales channel or third-party app used to manage the account's inventory.
Backorder The number of units not physically available for open orders. In other words, the number of pending shipments exceeds the On Hand quantity.
In Tote The quantity of a SKU currently picked to totes during the Single Item Batch (SIB) and Multi-Item Batch (MIB) processes for pending orders.
Name Readable reference for each product.
On Hand The total physical count of a SKU assigned to a sellable location in the warehouse.
Reserve

The amount of a SKU held back from the available quantity pushed to your sales channel.

See How to Reserve Inventory in ShipHero.

SKU (Stock Keeping Unit) The unique identification code assigned to each product in your inventory. ShipHero generates a SKU based on the product ID in the sales channel if none exists.

Location Terms in ShipHero

Term Definition
Pickable Bin A warehouse location pickers can be sent to when picking orders in the mobile app. For an order to be ready to pick, all items on it must be in a pickable bin.
Non-pickable Bin Locations omitted from the SIB and MIB picking paths that do not show when processing orders in the packing app. These are often used for staging or overstock locations.
Sellable Bin Locations where the inventory assigned to them counts toward the On Hand quantity used to calculate the available quantity, which ShipHero pushes to a connected store or third-party platform.
Non-sellable Bin Locations where the housed inventory is excluded from On Hand inventory and not pushed to store platforms or third-party apps. By default, non-sellable bins are also non-pickable. Common uses include reserved inventory, damaged items, and returns that need additional handling before going back into pickable inventory.
Replenishment Level / Replenishment Minimum

The minimum quantity of a SKU in pickable locations across the warehouse. ShipHero uses it as the trigger to add the SKU to the replenishment process.

When set to 0, SKUs only appear on the Replenishment report if the allocated quantity exceeds the pickable quantity. To see these SKUs on mobile, use the allocated filter.

Replenishment Max

The maximum quantity of a SKU in pickable locations across the warehouse. ShipHero uses it to calculate the quantity required to fill pickable locations as much as possible.

When the maximum level is set to 0, ShipHero uses the value entered for the minimum as the maximum.

Replenishment Increment

The increment at which replenishment should occur, so replenishment aligns with your preferred increments for efficient stock handling.

When there is not enough inventory to reach the maximum replenishment level, ShipHero adds all non-pickable inventory to be replenished and ignores the increment.

Kit Terms in ShipHero

Term Definition
Kit A SKU containing a collection of other SKUs, referenced as components. The components of a regular kit cannot be shipped in separate boxes or short-shipped.
Build Kit A kit setting that allows a kit to be broken apart and shown as separate line items on an order. These kits can be partially shipped when a component is out of stock, or split into separate packages when several boxes are required.

Purchase Order Terms in ShipHero

Term Definition
On Order Used for internal inventory tracking. Shows how many units you currently have on an open purchase order from your vendors.
Reorder Amount The number of units that should be reordered when a SKU reaches its Reorder Level.
Reorder Level The Available value a SKU must reach to trigger a reorder of the Reorder Amount. Setting this to 0 prevents a SKU from being added to a purchase order automatically.
Sell Ahead

The count of a SKU coming in on a purchase order that you want to sell on your platform before you receive it.

See How to Sell Inventory Before It Arrives (Sell Ahead).

More Resources

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  • ShipHero Academy

    Explore ShipHero Academy for certifications, deep-dive training, and expert-led courses on WMS and fulfillment. Build your expertise and help your team operate at a higher level.

  • Change Log

    Stay up to date with the latest improvements across ShipHero. The Change Log gives you a clear view of new features, enhancements, and fixes as they roll out—so you always know what’s new and what’s better.