What is meant by "Inventory Reservation" in Infor M3?

"Inventory Reservation" in Infor M3 refers to the process of setting aside a certain quantity of inventory to fulfill customer orders before the inventory is formally allocated to the sales order. This means that when a customer places an order, the system allows the business to reserve specific items to ensure that they are not sold to others or used for different purposes before fulfilling the committed order.

By reserving inventory, companies can improve customer satisfaction by guaranteeing product availability at the time of order processing. This also helps in managing order fulfillment more efficiently, as it prevents situations of stockouts for reserved items.

The other options do not accurately reflect the concept of inventory reservation. Counting inventory for audits relates to physical counts and verification processes, while calculating inventory aging focuses on evaluating how long items have been in stock. Lastly, reviewing inventory levels periodically is more about ongoing inventory management rather than the specific act of reserving stock for orders. Thus, the correct choice emphasizes the proactive nature of managing inventory specifically for customer commitments.