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ORIGINAL SYSTEM DESIGN QUESTION

Inventory holds across warehouses

Reserve product quantities during checkout across warehouses.

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Original exercise · advanced. Editorial role relevance does not imply a company has asked this question.

Requirements and constraints

  • One million SKUs; 1,000 reservations/second; 20 warehouses.
  • Prevent negative stock; expired and duplicate requests must be reconciled.
  • State assumptions and justify security, cost, operational ownership and data retention.

Pressure round

A warehouse becomes unreachable after accepting a hold.

Build and explain the design

Requirements & scope

Who uses it? What must it do? What is explicitly out of scope? State latency, durability and privacy goals.

Self-review guidance

Define the actors, required operations and out-of-scope behavior. Explicit requirement: Prevent negative stock; expired and duplicate requests must be reconciled.

Capacity estimates

State assumptions, peak requests/second, data volume and retention. Show your arithmetic and units.

Self-review guidance

Use this workload: One million SKUs; 1,000 reservations/second; 20 warehouses. Convert rates and payload sizes into peak compute/storage assumptions; show units, headroom and what remains unmeasured.

APIs & data model

Describe endpoints/events, entity keys, indexes, authorization, and idempotency.

Self-review guidance

Define inventory ledger entries, hold IDs, expiry and fulfillment allocations.

Architecture & data flow

Describe components and request/event paths. Use plain text arrows to sketch your design; explain each responsibility.

Self-review guidance

Use warehouse-scoped stock authority and a reservation coordinator.

Failures & observability

What happens on overload, duplicate events, partial failures or lost dependencies? Discuss monitoring and recovery.

Self-review guidance

Pressure-test: A warehouse becomes unreachable after accepting a hold. Describe bounded recovery, deduplication, observability and a user-visible failure state.

Tradeoffs & alternatives

Compare two plausible approaches. State the costs, consistency model and what would make you change the design.

Self-review guidance

Compare conservative availability with overselling risk and compensation.

Design guidance describes assumptions and tradeoffs; no architecture has been simulated or benchmarked.

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