1. What Is Inventory Day Supply?

Inventory Day Supply represents the number of days your current inventory will last based on your daily usage rate. It's a crucial metric for inventory management, helping businesses plan purchases and avoid stockouts.

2. How Does The Calculator Work?

The calculator uses the simple formula:

Where:

• \( Inventory \) — Current stock level in units
• \( Daily\ Usage \) — Average daily consumption in units per day

Explanation: This calculation provides a straightforward estimate of how long your current inventory will last at the current consumption rate.

3. Importance Of Day Supply Calculation

Details: Knowing your day supply helps optimize inventory levels, reduce carrying costs, prevent stockouts, improve cash flow, and enhance supply chain efficiency.

4. Using The Calculator

Tips: Enter your current inventory count and average daily usage. Both values must be positive numbers. The result shows how many days your inventory will last.

5. Frequently Asked Questions (FAQ)

Q1: What Is A Good Day Supply Number?
A: Ideal day supply varies by industry, but typically 30-60 days is considered optimal for most businesses to balance inventory costs and availability.

Q2: How Often Should I Calculate Day Supply?
A: For active inventory items, calculate weekly or monthly. For slow-moving items, quarterly calculations may suffice.

Q3: What If My Daily Usage Varies?
A: Use an average of recent usage data. For seasonal items, calculate separate day supplies for different seasons.

Q4: How Does This Relate To Reorder Point?
A: Day supply helps determine when to reorder. When day supply reaches your lead time plus safety stock days, it's time to reorder.

Q5: Can This Be Used For Perishable Goods?
A: Yes, but also consider expiration dates. The day supply should not exceed the product's shelf life.