Average inventory

A new home for the Coupa Supply Chain documentation

Starting with Supply Chain 42, our documentation will be located on Coupa Compass. The help here will continue to be accessible for the foreseeable future, but will no longer be updated. If you need a Compass user account, contact your company’s Designated Support Contact (DSC).

You can access new and updated Supply Chain documentation in the following location on Compass:

https://compass.coupa.com/en-us/products/supply-chain-design-and-planning

Average inventory

The Avg Inventory is the long-run time-weighted average on-hand inventory level. It is calculated as:

where:

r is the reorder point (Policy Parameter 1)

Q is the order size (Policy Parameter 2)

μ is the lead time demand mean

b is the average backorder

For example:

Last modified: Wednesday May 15, 2024

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