1.

Introduction: This document helps you to understand the complete functionality of how the inventory Updation takes place in the Inventory Management System for the products (both online and club) which are purchased from the eCommerce shopping site. Also this document will help you understand how the Inventory Management System is integrated with other applications in order to maintain the inventory level.

2. Overview of IMS: Global Inventory Management System is otherwise called as IMS. IMS is a single resource/entity where the inventory for all kinds of items is maintained/monitored. The different kinds of items available in the eCommerce shopping site are Online, Club and Auctions. The three important terms used in IMS are SUPPLY, DEMAND and AVAILABLE. These are the fields with which the inventory is monitored in IMS applications. SUPPLY Overall Item Inventory available for purchase DEMAND Ordered quantity by the customer for an item AVAILABLE Item inventory available for purchase after the demand Lets discuss more about these fields and the inventory updates in the following sections 3. Order Creation and Inventory Validation in IMS When an order is placed for an item from eCommerce application, immediately the inventory update happens in both Demand and Available fields in IMS application. When an item is added to shopping cart and on navigating to Shipping page, the item inventory is reserved for the ordered quantity in IMS. For example, lets consider the item inventory as below before order creation. Supply 10; Demand 0; Available 10 Customer places an order for 5 quantities. Once the order is created immediately the inventory in IMS gets updated as below. Supply 10; Demand 5; Available 5 Next if someone tries to place an order for the same item with more than 5 quantities, a notification message will be displayed to the member that the ordered item quantity is unavailable. Once the order is fulfilled and shipped to the customer, the inventory will be displayed as below in IMS application.

Supply 5; Demand 0; Available 5

Points to Remember: For online items, the inventory will be updated after order creation and order shipment For club items, the inventory will be updated after order creation and after Member Picked for CNP item and Received at Store for Tire item. Online items include Flowers, Static Bundle, Dynamic Bundle and Hybrid Bundle, Jewelry, Preorder, GE Appliances

4. Reservation Id in IMS and Virtual Item Inventory Validation RESERVATION ID Reservation id is nothing but the details of the ordered quantity that is reserved on placing the order from the ecommerce application. For example if a customer places an order from estore, a reservation id will be created immediately in IMS with the following details. Reservation Id Nothing but order number Qty Ship Node Same as displayed in OMS Ship Date Same as displayed in OMS Reservation Date

The reservations details will be available in the Reservation screen. Once the order is cancelled/Shipped, the reservation details will not be available anymore. Only when the order is created the reservations details can be found.

Virtual Items: Physical Gift Card, e Gift Card, Warranty, Membership items; all these are considered as virtual items as they are infinite in inventory. When an order is placed for the virtual items from the eCommerce site, reservation id will be created and there will not be any update in Supply, Demand and Available fields. Once the order is cancelled/shipped, the reservation details will be removed.

5. Order Cancellation and Inventory Validation in IMS

When an order is created a reservation is made to IMS and the ordered quantity is reserved. At the same time when the order is cancelled, the demand and Available gets updated accordingly. For Example; Before Placing the Order: Supply 10; Demand 0; Available 10 After placing the order for 5 qty: Supply 10; Demand 5; Available 5 After cancellation of the order: Supply 10; Demand 0; Available 10

5.1)

Order Cancellation from eCommerce:

Once an order is placed from eCommerce site, the demand and available gets updated in IMS. On cancelling the order the demand and available gets back to the normal state. Note that the order should be cancelled before the order reaches OMS. 5.2) Order Cancellation from Customer Service Application:

Once an order is placed from eCommerce site, the demand and available gets updated in IMS. On cancelling the order from CSC by CSR, the demand and available gets back to the normal state. Note that the order should be cancelled before the order reaches OMS. 5.3) Order Cancellation from Fulfillment Application:

Once an order is placed from estore, the demand and available gets updated in IMS. In sometime the order will reach OMS. When the order is released, it goes to fulfillment application for fulfillment. On cancelling the order from the fulfillment application the demand and available gets back to the normal state.

6. Order Modification and Inventory Validation in IMS: When an order is placed from eCommerce site, a reservation is made to IMS and the ordered quantity is reserved. At the same time when the order is modified, the demand and Available gets updated accordingly. For Example; Before Placing the Order:

Supply 10; Demand 0; Available 10 After placing the order for 5 qty: Supply 10; Demand 5; Available 5 After cancellation of the order: Supply 10; Demand 0; Available 10 6.1) Order Modification from Customer Service Application:

Once an order is placed from eCommerce site, the demand and available gets updated in IMS. On modifying the order from CSC by CSR, the demand and available gets back to the normal state. Note that the order should be modified before the order reaches OMS. 6.2) Order Modification from Fulfillment Application:

Once an order is placed from eCommerce site, the demand and available gets updated in IMS. On modifying the order from fulfillment application, the demand and available gets back to the normal state. Note that the order should be modified once the order is released in OMS.

7. Fulfillment Application and Inventory validation in IMS The inventory can also be updated through Fulfillment application in addition to the item feeds. The inventory update will have immediate effect in the inventory management system, its a synchronous call. For example, an item inventory is 0 for a vendor. The inventory can be increased either by adding the value through item feed or by directly updating through Fulfillment application.

8. Terms and Abbreviations: IMS Inventory Management System OMS Order Management System CSC Customer Service center CSR Customer Service Representative Qty - Quantity Reference

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