Days of Supply Report

An inventory manager may need to know whether the supply is enough to meet the demand, and on the average, how long the current supply will last. The Days of Supply Report provides visibility into the estimated number of days the inventory supply will be available, and the total supply and demand.

Figure 1 shows a sample of the Days of Supply Report. For a specific enterprise and ship node, the Estimated Days of Supply is calculated as:

Demand for the past 7-day period /7 = Average Demand
Current Supply / Average Demand = Estimated Days of Supply

The Estimated Days of Supply is rounded up and displays only two decimal places.

The Days of Supply Report should be run at night, during a period of light load.

If there is no past week demand for an item, the Estimated Days of Supply is shown in the report as "Indeterminate".