Inventory Days of Supply
Find out exactly how many days your current stock will last
Estimated Supply Remaining
0 Days
Enter data to see projection
How to use the Days of Supply Calculator
Days of Supply (also known as Inventory Outstanding) measures the average number of days a company holds its inventory before selling it. To use this tool, enter your Current Inventory (in value or units), the COGS (Cost of Goods Sold) for a specific time frame, and the Number of Days in that time frame (e.g., 30 for a month, 365 for a year). This calculation helps you balance your stock levels: too many days means capital is tied up; too few days means you risk losing customers because you can't fulfill orders.
- Optimizing Cash: If you have 180 days of supply, you might be overstocked. Reducing this to 60 days frees up cash for marketing or other needs.
- Lead Time: Compare your "Days of Supply" with your supplier's "Lead Time." If it takes 30 days to get new stock, but you only have 10 days of supply left, you're in trouble!
- Seasonality: During peak seasons (like Eid or Black Friday), your sales raftar (velocity) increases, so your days of supply will drop quickly.
What is the ideal "Days of Supply"? +
There is no single number, but many retail businesses aim for 30 to 60 days. Perishable goods (like food) should have a very low number, while luxury items might have a higher one.
How is this different from Inventory Turnover? +
They are two sides of the same coin. Turnover tells you how many *times* you sold your stock in a year. Days of Supply tells you how many *days* it takes to sell it once.
Can I calculate this for individual products? +
Yes, and it’s highly recommended! Your "Best Sellers" might have 5 days of supply while "Slow Movers" might have 200 days. Calculating per SKU helps you prioritize reorders.
What happens if my Days of Supply is too low? +
You risk "Stockouts." When customers see "Out of Stock," they go to your competitors, and you lose not just a sale, but potentially a lifetime customer.
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