1. What is Weeks of Supply?

Weeks of Supply (WOS) is an inventory management metric that calculates how many weeks the current inventory will last based on the current 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:

• \( WOS \) — Weeks of Supply (weeks)
• \( Inventory \) — Current inventory level (units)
• \( Sales \) — Sales rate (units per week)

Explanation: The formula divides the current inventory by the weekly sales rate to determine how many weeks the inventory will last at the current sales pace.

3. Importance of WOS Calculation

Details: Weeks of Supply is crucial for inventory optimization, cash flow management, and supply chain planning. It helps businesses maintain optimal inventory levels to meet customer demand while minimizing carrying costs.

4. Using the Calculator

Tips: Enter current inventory in units and weekly sales rate in units per week. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is a good Weeks of Supply value?
A: Ideal WOS varies by industry, but generally 4-8 weeks is considered optimal for most retail businesses. High WOS indicates overstocking, while low WOS risks stockouts.

Q2: How often should I calculate WOS?
A: Weekly or monthly calculations are recommended to maintain optimal inventory levels and respond to changing sales patterns.

Q3: What if my sales are seasonal?
A: For seasonal businesses, use historical data to adjust WOS targets accordingly and plan for peak seasons.

Q4: How does WOS relate to inventory turnover?
A: WOS and inventory turnover are inversely related. Higher turnover means lower WOS, indicating more efficient inventory management.

Q5: Can WOS be used for perishable goods?
A: Yes, WOS is particularly important for perishable goods to minimize waste and ensure product freshness.