1. What is Weeks of Supply?

Weeks of Supply is a key inventory management metric that calculates how long current inventory levels will last based on current demand rates. It helps businesses plan procurement and manage stock levels effectively.

2. How Does the Calculator Work?

The calculator uses the Weeks of Supply formula:

Where:

• \( \text{Inventory} \) — Current stock level in units
• \( \text{Weekly Demand} \) — Average weekly consumption in units per week

Explanation: This simple division provides the number of weeks the current inventory will last at the current demand rate.

3. Importance of Weeks of Supply Calculation

Details: Calculating weeks of supply is crucial for inventory optimization, preventing stockouts, reducing carrying costs, and improving cash flow management. It helps businesses maintain optimal inventory levels.

4. Using the Calculator

Tips: Enter current inventory in units and average weekly demand in units per week. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is a good weeks of supply target?
A: Ideal weeks of supply varies by industry and product type, but typically ranges from 2-8 weeks depending on lead times and demand variability.

Q2: How often should I calculate weeks of supply?
A: It's recommended to calculate this metric weekly or monthly as part of regular inventory management processes.

Q3: What if weekly demand fluctuates significantly?
A: For volatile demand, use a rolling average of several weeks' demand or consider safety stock in your calculations.

Q4: How does this relate to inventory turnover?
A: Weeks of supply is the inverse perspective of inventory turnover - it shows coverage time rather than how many times inventory turns over.

Q5: Should seasonal variations be considered?
A: Yes, for seasonal products, adjust weekly demand based on seasonal patterns or use historical data from comparable periods.