Calculate Inventory Days of Supply (DoS) | Days Inventory Outstanding

  

Days in Inventory & Average Inventory Formula

Average Inventory = (Beginning Inventory + Ending Inventory) / 2

Days in Inventory = 365 x Average Inventory / Cost of goods sold

How to Calculate Days in Inventory

Example

Inventory at the end of 2017 is $1000 and at the end of 2018 is $1200

Average inventory for 2018 = ($1000 + $1200) / 2

= $2,200 / 2

= $1,100

COGS per day = $7,300 / 365 = $20.

= $1,100 / $20

= 55 days

Inventory stayed in the system for an average of 55 days.

Leave a Comment