Days of Supply, or DoS, is also known as Days In Inventory (DII). This metric is used in various ways but is often used as an efficiency metric to measure the average number of days organizations stock their inventory before selling that inventory. DoS is a useful measure for any organization that stocks inventory and can be a key metric when analyzing your supply chain. The calculation for DoS is given by the following formula:
Here, the numerator, AverageInventory, is the average inventory levels during an accounting period. The denominator, AverageSoldPerDay, is simply the average amount of inventory taken out of stock per day. AverageSoldPerDay can be calculated across any timeline, although often, 365 days or a year is used when calculating the average number or value of goods sold.
This recipe demonstrates how to calculate DoS when considering...
