Which choice correctly defines the term 'onhand' in inventory management?

The term 'onhand' in inventory management refers specifically to the total stock that is physically present in a warehouse or storage facility. This includes all items that are available and ready to be sold, used, or processed, giving businesses a clear picture of what is immediately available for fulfilling orders or meeting production demands.

This definition is crucial because it allows inventory managers to assess stock levels, manage reordering processes, and minimize stockouts or overstock situations. Properly understanding and tracking onhand inventory ensures efficient operations and helps maintain service levels.

In contrast, the other options describe different inventory situations. Stock that is ordered but not yet received refers to outstanding or pending orders that have been placed but have not yet arrived, which are not included in the onhand count. Forecasted inventory levels pertain to projected future inventory needs based on sales predictions rather than current physical stock. Finally, inventory in transit refers to stock that is currently being transported to a location and is not physically present, further distinguishing it from what is categorized as onhand.