This figure is the expected number of days until you will run out of stock for an item. It's calculated simply as your Stock on Hand divided by the average daily demand for your future lead demand.
We work out your future lead demand for the current month and then use that as the first part of the calculation.
So if we forecast you will sell 82 units in the current month, we work out the average as below, then the current stock on hand is divided by that amount.
total forecast sales this month 82 / days in month 30 = 2.7 forecast daily average
current stock on hand 35 / forecast daily average 2.7 = 13 days of current inventory left
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