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Days of Supply Formula:
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The Days of Supply (DOS) formula calculates how many days inventory will last based on current usage rates. It's a crucial metric in inventory management, supply chain optimization, and resource planning across various industries.
The calculator uses the Days of Supply formula:
Where:
Explanation: The formula divides total available inventory by the average daily consumption rate to determine how many days the current stock will last.
Details: Accurate DOS calculation helps businesses maintain optimal inventory levels, prevent stockouts, reduce carrying costs, improve cash flow, and enhance supply chain efficiency.
Tips: Enter current inventory in units and average daily usage in units per day. Both values must be positive numbers greater than zero for accurate calculation.
Q1: What is considered a good Days of Supply?
A: Ideal DOS varies by industry and product type. Generally, 30-60 days is common for most retail, while perishable goods may require shorter cycles.
Q2: How often should DOS be calculated?
A: For optimal inventory management, DOS should be calculated weekly or monthly, or whenever there are significant changes in demand patterns.
Q3: What factors can affect Daily Usage rates?
A: Seasonal demand, promotions, market trends, economic conditions, and competitor activities can all impact daily consumption rates.
Q4: How can I improve my Days of Supply?
A: Optimize inventory through better forecasting, establish safety stock levels, improve supplier relationships, and implement just-in-time inventory systems.
Q5: What's the difference between DOS and inventory turnover?
A: DOS measures how long current inventory will last, while inventory turnover measures how many times inventory is sold and replaced during a period.