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Retail Supply Chain lesson

Days to out of stock

Days of supply turns weekly sales into daily sales, so you can name a date.

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About 5–10 minutes · no sign-up needed

The idea

Days of supply turns weekly sales into daily sales, so you can name a date:

Formulas

On hand ÷ ( Weekly sales ÷ 7 )

Key points

Daily salesWeekly sales ÷ 7.
Days of supplyOn hand ÷ Daily sales.
Out-of-stock dateToday + days of supply, if nothing arrives.

Stakeholders act on dates, not ratios: say "Canada runs out on the 21st".

Practice

Try each one in your head first, then open the answer.

1. How many days of supply does Canada have?
300 ÷ (150 ÷ 7) = 14 days
2. In D4, work out Canada's days of supply: on hand ÷ (weekly sales ÷ 7).
=B4/(C4/7)
3. Tap the market that runs out first.
Canada, in 14 days.
4. Australia has 500 on hand and sells 125 a week. How many days until it runs out?
500 ÷ (125 ÷ 7) = 28 days

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed