diff --git a/app/models/spree/stock_location.rb b/app/models/spree/stock_location.rb
new file mode 100644
index 0000000000..57cfd3f2b1
--- /dev/null
+++ b/app/models/spree/stock_location.rb
@@ -0,0 +1,79 @@
+module Spree
+  class StockLocation < ActiveRecord::Base
+    has_many :stock_items, dependent: :delete_all
+    has_many :stock_movements, through: :stock_items
+
+    belongs_to :state, class_name: 'Spree::State'
+    belongs_to :country, class_name: 'Spree::Country'
+
+    validates_presence_of :name
+
+    scope :active, -> { where(active: true) }
+
+    after_create :create_stock_items, :if => "self.propagate_all_variants?"
+
+    # Wrapper for creating a new stock item respecting the backorderable config
+    def propagate_variant(variant)
+      self.stock_items.create!(variant: variant, backorderable: self.backorderable_default)
+    end
+
+    # Return either an existing stock item or create a new one. Useful in
+    # scenarios where the user might not know whether there is already a stock
+    # item for a given variant
+    def set_up_stock_item(variant)
+      self.stock_item(variant) || propagate_variant(variant)
+    end
+
+    def stock_item(variant)
+      stock_items.where(variant_id: variant).order(:id).first
+    end
+
+    def stock_item_or_create(variant)
+      stock_item(variant) || stock_items.create(variant: variant)
+    end
+
+    def count_on_hand(variant)
+      stock_item(variant).try(:count_on_hand)
+    end
+
+    def backorderable?(variant)
+      stock_item(variant).try(:backorderable?)
+    end
+
+    def restock(variant, quantity, originator = nil)
+      move(variant, quantity, originator)
+    end
+
+    def unstock(variant, quantity, originator = nil)
+      move(variant, -quantity, originator)
+    end
+
+    def move(variant, quantity, originator = nil)
+      stock_item_or_create(variant).stock_movements.create!(quantity: quantity,
+                                                            originator: originator)
+    end
+
+    def fill_status(variant, quantity)
+      if item = stock_item(variant)
+
+        if item.count_on_hand >= quantity
+          on_hand = quantity
+          backordered = 0
+        else
+          on_hand = item.count_on_hand
+          on_hand = 0 if on_hand < 0
+          backordered = item.backorderable? ? (quantity - on_hand) : 0
+        end
+
+        [on_hand, backordered]
+      else
+        [0, 0]
+      end
+    end
+
+    private
+      def create_stock_items
+        Variant.find_each { |variant| self.propagate_variant(variant) }
+      end
+  end
+end
diff --git a/app/models/spree/stock_movement.rb b/app/models/spree/stock_movement.rb
new file mode 100644
index 0000000000..33281653c0
--- /dev/null
+++ b/app/models/spree/stock_movement.rb
@@ -0,0 +1,25 @@
+module Spree
+  class StockMovement < ActiveRecord::Base
+    belongs_to :stock_item, class_name: 'Spree::StockItem'
+    belongs_to :originator, polymorphic: true
+
+
+    after_create :update_stock_item_quantity
+
+    validates :stock_item, presence: true
+    validates :quantity, presence: true
+
+    scope :recent, -> { order('created_at DESC') }
+
+    def readonly?
+      !new_record?
+    end
+
+    private
+    def update_stock_item_quantity
+      return unless Spree::Config[:track_inventory_levels]
+      stock_item.adjust_count_on_hand quantity
+    end
+  end
+end
+
diff --git a/spec/models/spree/stock_location_spec.rb b/spec/models/spree/stock_location_spec.rb
new file mode 100644
index 0000000000..02a55ac877
--- /dev/null
+++ b/spec/models/spree/stock_location_spec.rb
@@ -0,0 +1,205 @@
+require 'spec_helper'
+
+module Spree
+  describe StockLocation do
+    subject { create(:stock_location_with_items, backorderable_default: true) }
+    let(:stock_item) { subject.stock_items.order(:id).first }
+    let(:variant) { stock_item.variant }
+
+    it 'creates stock_items for all variants' do
+      subject.stock_items.count.should eq Variant.count
+    end
+
+    context "handling stock items" do
+      let!(:variant) { create(:variant) }
+
+      context "given a variant" do
+        subject { StockLocation.create(name: "testing", propagate_all_variants: false) }
+
+        context "set up" do
+          it "creates stock item" do
+            subject.should_receive(:propagate_variant)
+            subject.set_up_stock_item(variant)
+          end
+
+          context "stock item exists" do
+            let!(:stock_item) { subject.propagate_variant(variant) }
+
+            it "returns existing stock item" do
+              subject.set_up_stock_item(variant).should == stock_item
+            end
+          end
+        end
+
+        context "propagate variants" do
+          let(:stock_item) { subject.propagate_variant(variant) }
+
+          it "creates a new stock item" do
+            expect {
+              subject.propagate_variant(variant)
+            }.to change{ StockItem.count }.by(1)
+          end
+
+          context "passes backorderable default config" do
+            context "true" do
+              before { subject.backorderable_default = true }
+              it { stock_item.backorderable.should be_true }
+            end
+
+            context "false" do
+              before { subject.backorderable_default = false }
+              it { stock_item.backorderable.should be_false }
+            end
+          end
+        end
+
+        context "propagate all variants" do
+          subject { StockLocation.new(name: "testing") }
+
+          context "true" do
+            before { subject.propagate_all_variants = true }
+
+            specify do
+              subject.should_receive(:propagate_variant).at_least(:once)
+              subject.save!
+            end
+          end
+
+          context "false" do
+            before { subject.propagate_all_variants = false }
+
+            specify do
+              subject.should_not_receive(:propagate_variant)
+              subject.save!
+            end
+          end
+        end
+      end
+    end
+
+    it 'finds a stock_item for a variant' do
+      stock_item = subject.stock_item(variant)
+      stock_item.count_on_hand.should eq 10
+    end
+
+    it 'finds a stock_item for a variant by id' do
+      stock_item = subject.stock_item(variant.id)
+      stock_item.variant.should eq variant
+    end
+
+    it 'returns nil when stock_item is not found for variant' do
+      stock_item = subject.stock_item(100)
+      stock_item.should be_nil
+    end
+
+    it 'creates a stock_item if not found for a variant' do
+      variant = create(:variant)
+      variant.stock_items.destroy_all
+      variant.save
+
+      stock_item = subject.stock_item_or_create(variant)
+      stock_item.variant.should eq variant
+    end
+
+    it 'finds a count_on_hand for a variant' do
+       subject.count_on_hand(variant).should eq 10
+    end
+
+    it 'finds determines if you a variant is backorderable' do
+      subject.backorderable?(variant).should be_true
+    end
+
+    it 'restocks a variant with a positive stock movement' do
+      originator = double
+      subject.should_receive(:move).with(variant, 5, originator)
+      subject.restock(variant, 5, originator)
+    end
+
+    it 'unstocks a variant with a negative stock movement' do
+      originator = double
+      subject.should_receive(:move).with(variant, -5, originator)
+      subject.unstock(variant, 5, originator)
+    end
+
+    it 'it creates a stock_movement' do
+      expect {
+        subject.move variant, 5
+      }.to change { subject.stock_movements.where(stock_item_id: stock_item).count }.by(1)
+    end
+
+    it 'can be deactivated' do
+      create(:stock_location, :active => true)
+      create(:stock_location, :active => false)
+      Spree::StockLocation.active.count.should eq 1
+    end
+
+    context 'fill_status' do
+      it 'all on_hand with no backordered' do
+        on_hand, backordered = subject.fill_status(variant, 5)
+        on_hand.should eq 5
+        backordered.should eq 0
+      end
+
+      it 'some on_hand with some backordered' do
+        on_hand, backordered = subject.fill_status(variant, 20)
+        on_hand.should eq 10
+        backordered.should eq 10
+      end
+
+      it 'zero on_hand with all backordered' do
+        zero_stock_item = mock_model(StockItem,
+                                     count_on_hand: 0,
+                                     backorderable?: true)
+        subject.should_receive(:stock_item).with(variant).and_return(zero_stock_item)
+
+        on_hand, backordered = subject.fill_status(variant, 20)
+        on_hand.should eq 0
+        backordered.should eq 20
+      end
+
+      context 'when backordering is not allowed' do
+        before do
+          @stock_item = mock_model(StockItem, backorderable?: false)
+          subject.should_receive(:stock_item).with(variant).and_return(@stock_item)
+        end
+
+        it 'all on_hand' do
+          @stock_item.stub(count_on_hand: 10)
+
+          on_hand, backordered = subject.fill_status(variant, 5)
+          on_hand.should eq 5
+          backordered.should eq 0
+        end
+
+        it 'some on_hand' do
+          @stock_item.stub(count_on_hand: 10)
+
+          on_hand, backordered = subject.fill_status(variant, 20)
+          on_hand.should eq 10
+          backordered.should eq 0
+        end
+
+        it 'zero on_hand' do
+          @stock_item.stub(count_on_hand: 0)
+
+          on_hand, backordered = subject.fill_status(variant, 20)
+          on_hand.should eq 0
+          backordered.should eq 0
+        end
+      end
+
+      context 'without stock_items' do
+        subject { create(:stock_location) }
+        let(:variant) { create(:base_variant) }
+
+        it 'zero on_hand and backordered', focus: true do
+          subject
+          variant.stock_items.destroy_all
+          on_hand, backordered = subject.fill_status(variant, 1)
+          on_hand.should eq 0
+          backordered.should eq 0
+        end
+      end
+    end
+  end
+end
diff --git a/spec/models/spree/stock_movement_spec.rb b/spec/models/spree/stock_movement_spec.rb
new file mode 100644
index 0000000000..fcc387c460
--- /dev/null
+++ b/spec/models/spree/stock_movement_spec.rb
@@ -0,0 +1,48 @@
+require 'spec_helper'
+
+describe Spree::StockMovement do
+  let(:stock_location) { create(:stock_location_with_items) }
+  let(:stock_item) { stock_location.stock_items.order(:id).first }
+  subject { build(:stock_movement, stock_item: stock_item) }
+
+  it 'should belong to a stock item' do
+    subject.should respond_to(:stock_item)
+  end
+
+  it 'is readonly unless new' do
+    subject.save
+    expect {
+      subject.save
+    }.to raise_error(ActiveRecord::ReadOnlyRecord)
+  end
+
+  it 'does not update count on hand when track inventory levels is false' do
+    Spree::Config[:track_inventory_levels] = false
+    subject.quantity = 1
+    subject.save
+    stock_item.reload
+    stock_item.count_on_hand.should == 10
+  end
+
+  context "when quantity is negative" do
+    context "after save" do
+      it "should decrement the stock item count on hand" do
+        subject.quantity = -1
+        subject.save
+        stock_item.reload
+        stock_item.count_on_hand.should == 9
+      end
+    end
+  end
+
+  context "when quantity is positive" do
+    context "after save" do
+      it "should increment the stock item count on hand" do
+        subject.quantity = 1
+        subject.save
+        stock_item.reload
+        stock_item.count_on_hand.should == 11
+      end
+    end
+  end
+end