What is the portion of inventory or production that is not committed to customer orders called?

The term "available-to-promise" refers to the portion of inventory or production that is not currently committed to customer orders and is available for new orders. This metric is important in supply chain and inventory management as it helps businesses understand how much product they can promise to new customers without compromising existing commitments. It reflects a company's ability to fulfill additional customer demand based on current inventory and production levels.

In many business scenarios, maintaining a clear understanding of available-to-promise inventory allows companies to optimize their sales strategies and avoid potential stockouts or overcommitments. This measure helps in planning and forecasting, ensuring that customer satisfaction is maintained while also managing inventory levels effectively.