Dynamics 365 Animated Supply Chain Videos Explained: Part 5 of 50: Inventory Reservation

Dynamics 365 Animated Supply Chain Videos Explained: Part 5 of 50: Inventory Reservation

As usual, we are back with another Supply Chain Lesson in Dynamics 365, presented by our Instructor “Animated Brandon“. In this video, he will explain how the Inventory Reservation Process works through straightforward demonstrations and examples.

Inventory Reservation is a key part of the production process. It allows businesses to maintain an effective supply and demand flow in short term, to keep the manufacturing and logistics activities effective.

This means that your business’s overall customer service will improve as the orders can be fulfilled on time.

Although it sounds quite simple, there are several factors that you must take into account for this process to be successful and profitable for your business. So let’s go!


Every business needs to have a minimum number of products available to cover the demand, even when it exceeds expectations.

In other words, it needs to have a balance between demand and supply. That way it can fulfill customers’ orders at all times.

To achieve this, you must carefully calculate the number of products you will need (forecasting) to avoid a shortage of stock that can compromise your business’s future operations.

In this way, Inventory Reservation is the process of retaining or holding items for a certain customer or specific sales orders that are going to be placed in the future.

This will ensure the availability of the items for customers during the order capture.

You can even reserve inventory to respond to any emergency that could represent a risk for your production flow.

If a business reserves an excessive amount of inventory, it risks not being able to meet orders for other customers with inventory that was -in fact- available in the warehouse.

In the same order, if it reserves too little, it may not satisfy the targeted on-time delivery performance for the high priority customers.

That’s why using platforms like Microsoft Dynamics 365 is useful. It helps you avoid these margin errors during inventory management reservation.


The inventory reservation process with Microsoft D365 is quite simple and organized, ideal for you to implement in your business and protect your income.

It is also important to have those committed to large, specific customers in good stead. Even when manufacturing exclusive items, you must have them organized and at hand.

Remember that maintaining a good relationship with customers and is how you stay at the top of the market.

Understanding Inventory Reservation on Dynamics 365 is not as hard as one might think.

In this video, “Animated Brandon” showed you how the Inventory Reservation Process works on Dynamics 365. With this in mind, you can start making your own settings.

At Instructor Brandon, we are more than happy to help you master Dynamics 365.

So please don’t wait any longer to improve your business processes with us. If you liked this video, leave us a “thumbs up” and take a look at the rest of our videos.

To get more information about our services or courses, Contact Us, one of our team members will be there to answer your questions. See you soon!