1. What is Weeks of Supply Inventory?

Weeks of Supply is a key inventory management metric that measures how long your current inventory will last based on your average sales rate. It helps businesses optimize inventory levels and avoid stockouts or overstocking.

2. How Does the Calculator Work?

The calculator uses the Weeks of Supply formula:

Where:

• \( Inventory \) — Current inventory level in units
• \( Sales \) — Annual sales in units per year
• \( 52 \) — Number of weeks in a year

Explanation: The formula converts annual sales to weekly sales by dividing by 52, then divides current inventory by the weekly sales rate to determine how many weeks the inventory will last.

3. Importance of Weeks of Supply Calculation

Details: Calculating weeks of supply is crucial for effective inventory management, cash flow optimization, and ensuring product availability while minimizing carrying costs.

4. Using the Calculator

Tips: Enter current inventory in units and annual sales in units per year. Both values must be positive numbers. The calculator will compute how many weeks your current inventory will last.

5. Frequently Asked Questions (FAQ)

Q1: What is a good weeks of supply target?
A: Ideal weeks of supply varies by industry and product, but typically ranges from 4-8 weeks for most retail businesses.

Q2: How does this differ from days of supply?
A: Weeks of supply provides a longer-term view (weeks), while days of supply offers more granular daily planning. Weeks = Days / 7.

Q3: Should I use annual or weekly sales data?
A: Annual sales data provides a more stable average, but you can use recent weekly data multiplied by 52 for current trends.

Q4: What if my sales are seasonal?
A: For seasonal products, use sales data from the same period in previous years or adjust for seasonal patterns.

Q5: How often should I calculate weeks of supply?
A: Calculate weekly or monthly to monitor inventory health and make timely replenishment decisions.