Pre-build stock

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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

Pre-build stock

Pre-build stock is required in situations when a demand for a given period exceeds capacity. If this scenario occurs, production in the previous period(s) has to be increased and stored as inventory in anticipation for the period with a demand higher than maximum capacity. Consider the following example.

Suppose the maximum production capacity of the product in consideration (Product A) is 200 units/quarter. The demand for this product as per quarters in 2010 is given as follows.

Period	Quantity
1st Quarter	50
2nd Quarter	0
3rd Quarter	100
4th Quarter	450

Simply producing as per the demand in each quarter would result in a demand of 250 units being unfulfilled in the final quarter. However, by pre-building some units, all of the demand can be satisfied.

Period	Quantity	Production	Inventory
1st Quarter	50	50	0
2nd Quarter	0	150	150
3rd Quarter	100	200	250
4th Quarter	450	200	0

Thus, pre-building 150 units in the 2nd quarter and 100 units in the 3rd quarter allows fulfillment all 450 orders in the 4th quarter, even though production was limited to 200 units in that quarter.

You can use the Inventory Constraints table to constrain the pre-build inventory values.

Last modified: Friday May 12, 2023

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