1. What is Days of Supply Calculation?

Days of Supply (DOS) is a key inventory management metric that calculates how long current inventory levels will last based on average daily usage. It helps businesses optimize inventory levels and prevent stockouts.

2. How Does the Calculator Work?

The calculator uses the Days of Supply formula:

Where:

• \( DOS \) — Days of Supply (days)
• \( Inventory \) — Current inventory level (units)
• \( Daily\ Usage \) — Average daily consumption (units/day)

Explanation: The formula divides total inventory by the average daily consumption rate to determine how many days the current inventory will last.

3. Importance of DOS Calculation

Details: Accurate DOS calculation is crucial for inventory optimization, supply chain management, cash flow planning, and preventing both overstocking and stockouts.

4. Using the Calculator

Tips: Enter current inventory in units and average daily usage in units per day. Both values must be positive numbers greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is an ideal Days of Supply value?
A: Ideal DOS varies by industry and product, but typically ranges from 15-45 days depending on lead times, demand variability, and storage costs.

Q2: How often should DOS be calculated?
A: DOS should be calculated regularly (weekly or monthly) and whenever there are significant changes in inventory levels or usage patterns.

Q3: What factors can affect Daily Usage accuracy?
A: Seasonal variations, promotions, market trends, and economic conditions can all impact daily usage rates and should be considered in calculations.

Q4: How does DOS relate to reorder point?
A: DOS helps determine reorder points by indicating when inventory levels will reach critical levels based on current consumption rates.

Q5: Can DOS be used for perishable goods?
A: Yes, DOS is particularly important for perishable goods to minimize waste and ensure product freshness through proper inventory rotation.