Inventory Days of Supply (DOS)
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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

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.

KPI Definition

Business Value

Movement Direction

Sample Formula

Inventory on Hand / Average Daily Consumption

Should Aim For
1
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