Inventory Coverage Days Metric
Essential knowledge
Intended Audience:
Business User
Author:
Movyn John
Changed on:
20 Oct 2025
Overview
Learn about the Inventory Coverage Days Metric in Fluent Analytics
Key points
- Coverage assumes current sales velocity continues
- Seasonal and promotional events can dramatically change velocity
- Lead times must be considered in coverage planning
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
Technical details
Formula:
(inventoryPosition.onHand / (SUM(inventoryQuantity.qty where type = {TYPE_SALE} within selected time period) / number_of_days) for each SKU
Configuration:
- TYPE_SALE: Type definitions for inventory quantity sales (default: SALE)
