1. What Is Days Of Stock (DOS)?

Days Of Stock (DOS) is a key inventory management metric that calculates how many days your current inventory will last based on your average daily sales rate. It helps businesses optimize inventory levels and avoid stockouts or overstocking.

2. How Does The Calculator Work?

The calculator uses the DOS formula:

Where:

• \( Inventory \) — Current stock level in units
• \( Daily\ Sales \) — Average daily sales rate in units per day

Explanation: This simple division gives you the number of days your current inventory will last at the current sales pace.

3. Importance Of DOS Calculation

Details: DOS calculation is crucial for effective inventory management, cash flow optimization, and ensuring product availability while minimizing carrying costs and stock obsolescence.

4. Using The Calculator

Tips: Enter your current inventory level in units and your average daily sales rate in units per day. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is a good DOS value?
A: Ideal DOS varies by industry, but generally 30-60 days is considered healthy for most retail businesses. High-turnover items may require lower DOS.

Q2: How often should I calculate DOS?
A: For optimal inventory management, calculate DOS weekly or monthly, especially for fast-moving products or seasonal items.

Q3: What if my daily sales vary significantly?
A: Use a rolling average of daily sales over a relevant period (e.g., 30 days) to account for sales fluctuations and seasonality.

Q4: Can DOS help with reordering decisions?
A: Yes, DOS is essential for determining reorder points and quantities. Low DOS indicates need to reorder soon, while high DOS suggests excess inventory.

Q5: What are the limitations of DOS calculation?
A: DOS doesn't account for sudden demand spikes, supplier lead times, or product seasonality. It should be used alongside other inventory metrics.