Glossary · Planning
What is Days of cover?
Days of cover is how many days current stock will last at the current rate of sale.
Compared with the supplier lead time it tells you whether you will run out before a new order can arrive. Some teams call it days of supply or days on hand.
Formula
Days of cover = (on hand + on order) ÷ daily sales velocity
Example
600 units on hand, selling 30 a day: 20 days of cover.
Calculate it
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