Days of Supply

You can use this chart to view inventory reports measured as days of supplies, which correspond to the number of days of demand coverage from the available stock at the end of the period.

See Also
Inventory Level
Inventory Value
Executive S&OP Intelligence KPIs

Controlling the days of supply enables you to reduce the delay between the investment in raw materials and revenue, the inventory cost, as well as reducing the risk associated with the obsolescence of a product.

Days of Supply are calculated as the Inventory Value on a considered period over the Total Yearly Cost of Goods Sold for the considered scope.

A scope is defined as the intersection of one or more of the following dimensions, at any chosen level of aggregation:

  • An item (product category, family...), and
  • A stock location (region, country, ...).

The chart is split into two parts in time:

  • Actual inventory days of supply in the past and in the current period, and
  • Projected inventory days of supply in current and future periods.
Note: You can compare the scenarios side by side in the chart.

While you can see days of supply in periods with actuals, for periods with planned days of supply, you can see the projected performance.

If you are investigating the defined maximum days of supply target for the supply chain scope, it is shown in the chart.