Days of Supply

How many days of forward demand current inventory covers.

Days of supply is the most intuitive coverage measure for operators and the fastest way to spot both risk and excess.

4,500 units on hand with demand of 150 per day = 30 days of supply.

Compare against replenishment lead time plus a safety buffer. Coverage below lead time means a stockout is already likely.

Use forward demand rather than trailing, review by segment, and align coverage targets to lead time and demand variability.

Using a company-wide average that hides items at 2 days and items at 400 days.