Stock cover (also called days of supply or days on hand) measures how many days your current stock will last at the current rate of demand. It is one of the quickest ways to spot both stockout risk and overstock.
Enter your current stock on hand and your average daily demand for the item. Use a recent average, for example the last 30 to 90 days, and remove one-off spikes such as a single bulk order.
For an item with a 14-day supplier lead time, a stock cover of 10 days means you will run out before a new order arrives. A cover far above your reorder cycle points to excess stock tying up cash.
Stock Cover Calculator
Stock cover
30 days
≈ 4.29 [object Object]
How the calculation works
Stock cover (days) = stock on hand ÷ average daily demand. Stock cover (weeks) = days ÷ 7.
Example: 1,200 units on hand and 40 units sold per day gives 1,200 ÷ 40 = 30 days, or about 4.3 weeks.
The figure assumes demand stays steady. For seasonal items, use the demand you expect over the coming weeks rather than the historical average.
See also: Days sales of inventory calculator, Inventory-to-Sales Ratio Calculator.
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