Inventory Days of Supply (DOS)
Category: Operational
Measures how many days of supply are available in inventory based on current usage rates.
What it Measures ?
Measures how many days inventory will last.
Relevant StakeHolders
Inventory Manager, Operations
Why it Matters ?
Ensures inventory optimization and avoids shortages.
In-depth Use Case / Real-world Example
A company manufacturing clothing calculates Inventory Days of Supply (DOS) by dividing the current inventory by the daily usage rate. For example, if the company has 10,000 units in stock and uses 500 units per day, the DOS is 20 days. This helps maintain optimal inventory levels, avoiding overstocking or stockouts.
Sample Formula
Inventory on Hand / Average Daily Consumption