Inventory Coverage Days Metric
How-to Guide
Author:
Holger Lierse
Changed on:
16 Sept 2025
Key Points
- Number of days current inventory will last at current sales velocity.
Steps
What it measures
Number of days the current inventory will last at the current sales velocity.
When to use this metric
- Plan replenishment timing and quantities
- Identify potential stockout risks
- Optimize inventory investment levels
- Set reorder points and safety stock levels
How to interpret
- Good performance: Coverage days align with replenishment lead times plus safety margin
- Potential issues: Too few days risk stockouts; too many indicate excess investment
- Benchmark guidance: Typically 30-90 days depending on lead times and demand variability
Key considerations
- Coverage assumes current sales velocity continues
- Seasonal and promotional events can dramatically change velocity
- Lead times must be considered in coverage planning
Technical details
Formula:
(inventoryPosition.onHand / (SUM(inventoryQuantity.qty where type = {SALE_TYPE} within selected time period) / number_of_days) for each SKU
Configurable elements:
- SALE_TYPE: Type definitions for inventory quantity sales (default: SALE)
