1. What is Months of Stock (MOS)?

Months of Stock (MOS) is an inventory management metric that calculates how long current inventory levels will last based on average monthly usage. It helps businesses optimize inventory levels and avoid stockouts or overstocking.

2. How Does the Calculator Work?

The calculator uses the Months of Stock formula:

Where:

• \( MOS \) — Months of Stock (months)
• \( Inventory \) — Current inventory level (units)
• \( Monthly\ Usage \) — Average monthly consumption (units/month)

Explanation: The formula divides total inventory by the average monthly usage rate to determine how many months the current stock will last.

3. Importance of MOS Calculation

Details: MOS is crucial for inventory planning, cash flow management, and supply chain optimization. It helps businesses maintain optimal inventory levels, reduce carrying costs, and ensure product availability.

4. Using the Calculator

Tips: Enter current inventory in units and average monthly usage in units per month. Both values must be positive numbers, with monthly usage greater than zero.

5. Frequently Asked Questions (FAQ)

Q1: What is an ideal MOS value?
A: Ideal MOS varies by industry and product, but typically 1-3 months is considered optimal for most businesses.

Q2: How often should MOS be calculated?
A: MOS should be calculated regularly, ideally monthly, to monitor inventory trends and make timely adjustments.

Q3: What if MOS is too high?
A: High MOS indicates overstocking, which ties up capital and increases storage costs. Consider reducing orders or running promotions.

Q4: What if MOS is too low?
A: Low MOS risks stockouts and lost sales. Increase safety stock levels or improve supply chain reliability.

Q5: Can MOS be used for seasonal products?
A: For seasonal items, use adjusted monthly usage that accounts for seasonal variations rather than simple averages.