Definition: How many days of stock do you have in inventory before you are all out of stock.

Note: This uses the current units on hand in the equation. The average number of units sold per day is when the product was in stock and the amount of days that are used for that average is determined by the date filter.

Equation: total quantity on hand as of today/ average number of units sold per (in stock) day.

Example: This measure is handy because it takes into account 2 important factors; 1 how much inventory you have on hand and 2 how fast does the inventory sell.

Retailers can use this information to make sure they aren't overstocking and aren't close to being out of stock. If I were in charge of the store in the snip below, I would stop stocking up on the majority of products from the categories that are yellow. In addition to that, I would also want to dive into the pre-roll category and understand what products need stocking ASAP since I only have 14 days of stock left for that category.