If you work in manufacturing, you've probably heard phrases like:
"How many are still outstanding on this material?"
"There's still some outstanding quantity left."
"Please check the outstanding order balance."
If you're new to manufacturing,
"What does 'outstanding' even mean?"
is probably what's going through your head.
This article explains the **outstanding order quantity (chuuzan)** used in purchasing and ordering work, in a way that's easy to understand even for people who are new to manufacturing.
What Is the Outstanding Order Quantity?
Put simply, the outstanding order quantity is:
the quantity that has been ordered but has not yet arrived
.
For example, suppose you ordered 100 units of Material A.
Later, 60 units arrived from the supplier.
In this case,
発注数量：100個
入荷済数量：60個
発注残：40個
is what you get.
You ordered 100 units, and 60 of them have already arrived.
The remaining 40 units haven't arrived yet.
These "40 units not yet delivered" are the outstanding order quantity.
Basically,
Outstanding order quantity = Quantity ordered − Quantity received
is the easiest way to think about it.
What Exactly Is "Outstanding"?
When you first hear the term "outstanding order quantity,"
you might think it means "what's left in inventory?"
However, the outstanding order quantity is not inventory.
The "outstanding" part of the term means
the portion of the ordered quantity that has not yet arrived
.
For example,
100個発注
↓
60個入荷
↓
残り40個が未入荷
Because these 40 undelivered units are still "outstanding," they're called the outstanding order quantity.
In other words, the outstanding order quantity can also be thought of as the quantity expected to arrive from now on.
Why Doesn't Everything Arrive at Once?
You might think, "If we ordered 100 units, shouldn't they all arrive together?"
Of course, sometimes everything does arrive in a single delivery.
In manufacturing, however, a single order is often delivered in multiple installments.
This is called split delivery (bunnou).
For example, an order of 100 units might arrive like this:
7月1日 30個入荷
7月5日 30個入荷
7月10日 40個入荷
The outstanding order quantity decreases each time a delivery arrives.
発注時
発注残：100個
↓
30個入荷
発注残：70個
↓
30個入荷
発注残：40個
↓
40個入荷
発注残：0個
Once all the goods or materials have arrived, the outstanding order quantity becomes 0.
By keeping an eye on the outstanding order quantity, you can confirm how many more units are still expected to arrive.
Outstanding Order Quantity and Inventory Are Different Things
Outstanding order quantity and inventory are easy to confuse, but they're two different things.
Inventory is
what the company currently has on hand
.
Outstanding order quantity, on the other hand, is
what has been ordered but hasn't arrived yet
.
For example,
現在庫：20個
発注残：100個
let's say this is the current situation.
Right now, the company physically has 20 units on hand.
100 units have been ordered, but they haven't arrived yet.
So the quantity available to use right away is basically 20 units.
But eventually, 100 more units are expected to arrive.
In other words,
Inventory = What you have now
Outstanding order quantity = What's expected to arrive from now on
is the easiest way to think about it.
Why Does the Outstanding Order Quantity Matter?
The outstanding order quantity matters because it helps you anticipate future inventory levels.
For example, suppose Material A has only 10 units in stock.
Looking at that number alone,
you might think, "Inventory is low—let's order 100 more units."
But when you check the outstanding order quantity,
現在庫：10個
発注残：500個
it might turn out to look like this.
500 units have already been ordered and are expected to arrive soon.
If you order another 100 units on top of that, you might end up buying in far more material than you actually need.
Conversely, if the situation were
現在庫：10個
発注残：0個
then nothing is expected to arrive going forward.
Depending on the production plan, you may need to place a new order right away.
In this way, checking the outstanding order quantity in addition to current inventory lets you think about how inventory will look going forward.
The Outstanding Order Quantity Represents "Future Deliveries"
When trying to understand the outstanding order quantity, it helps to think of it as
"future deliveries yet to come"
.
For example, suppose
現在庫：100個
発注残：200個
is the situation.
What the company currently has is 100 units.
But 200 units have already been ordered.
Put simply, those 200 units are expected to arrive at some point.
So you can think about inventory from the perspective of
現在庫
+
今後の入荷予定
combining what's on hand now with what's expected to arrive later.
That said, the outstanding order quantity is ultimately just a "plan" or "expectation."
Depending on circumstances at the supplier, delivery may be delayed.
Goods may also be delivered in a smaller quantity than planned.
The order itself might even get canceled.
So just because there's an outstanding order quantity doesn't mean you can actually use that material right now.
This is a major difference from inventory.
When Does the Outstanding Order Quantity Decrease?
Basically, the outstanding order quantity decreases whenever goods or materials arrive.
For example,
発注数量：100個
発注残：100個
if this is the state, and 40 units are delivered, it becomes
入荷済：40個
発注残：60個
Then, if another 60 units are delivered,
入荷済：100個
発注残：0個
is the result.
That said, the exact timing at which the outstanding order quantity decreases can vary depending on the company or system.
For example, it might be reduced:
- when the goods physically arrive
- when the receiving process is done
- when inspection is complete
- when acceptance is complete
and so on.
Because of this, in actual business operations,
"At this company, which process causes the outstanding order quantity to decrease?"
is an important thing to check.
"Outstanding" (Chuuzan) Doesn't Always Refer to Outstanding Orders
On the shop floor, "outstanding order quantity" is often shortened simply to chuuzan (outstanding).
However, you need to be a little careful with the term "chuuzan."
Depending on the company or department, it can refer to either:
- outstanding order quantity (on the purchasing side)
- outstanding received-order quantity (on the sales side)
and either one might simply be called "chuuzan."
The outstanding received-order quantity is
the quantity that has been ordered by a customer but has not yet been shipped or delivered
.
This is essentially the flip side of the outstanding order quantity.
If the conversation is about purchasing or procurement, it's likely referring to the outstanding order quantity.
If it's about sales or shipping, it may well be referring to the outstanding received-order quantity.
When you hear the term "chuuzan," it's a good idea to confirm whether it refers to outstanding orders or outstanding received orders.
Summary
The outstanding order quantity is
the quantity that has been ordered but has not yet arrived
.
For example,
100個発注
−
60個入荷
=
発注残40個
is how it works out.
The outstanding order quantity is not inventory.
Inventory is "what you have now"
Outstanding order quantity is "what's expected to arrive from now on"
.
In manufacturing, looking only at current inventory won't tell you how inventory will look going forward.
How many units have already been ordered.
How many of those have already arrived.
How many more are still expected to arrive.
Checking the outstanding order quantity lets you see this kind of "movement of materials going forward."
If you're new to manufacturing and come across the term "chuuzan (outstanding)," try asking yourself first:
"Of what's been ordered, how many units haven't arrived yet?"
.