Days of supply is a metric that measures how long current inventory levels will last given the average daily usage or sales rate. It provides a standard way to compare inventory levels across companies, industries, or time periods. This metric is useful for benchmarking because it directly relates inventory levels to actual usage rates, making it a more precise measure of inventory efficiency than other metrics like fill rate or net asset turns.
[:, Vollmann, T.E., Berry, W.L., Whybark, D.C., & Jacobs, F.R. (2005). Manufacturing Planning and Control for Supply Chain Management. McGraw-Hill., Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson., , ]
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