1. What is Weeks of Supply?

Weeks of Supply is a key inventory management metric that measures how long current inventory levels will last based on current sales rates. 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:

• \( \text{Inventory} \) — Current inventory level (units)
• \( \text{Sales} \) — Annual sales rate (units/year)
• \( 52 \) — Number of weeks in a year

Explanation: This calculation converts annual sales to weekly sales and then divides inventory by the weekly sales rate to determine how many weeks the current inventory will last.

3. Importance of Weeks of Supply Calculation

Details: Monitoring weeks of supply helps businesses maintain optimal inventory levels, reduce carrying costs, improve cash flow, and ensure product availability for customers.

4. Using the Calculator

Tips: Enter current inventory in units and annual sales in units per year. Both values must be positive numbers. The result shows how many weeks your current inventory will last at the current sales rate.

5. Frequently Asked Questions (FAQ)

Q1: What is an ideal weeks of supply value?
A: Ideal values vary by industry and product type, but typically 4-8 weeks is considered healthy for most retail businesses.

Q2: How often should I calculate weeks of supply?
A: It's recommended to calculate this metric weekly or monthly to maintain optimal inventory control.

Q3: What if my sales are seasonal?
A: For seasonal businesses, use recent sales data or average sales from comparable periods rather than full-year averages.

Q4: Can I use this for multiple products?
A: Yes, calculate weeks of supply for each SKU individually to manage product-level inventory effectively.

Q5: What does a high weeks of supply indicate?
A: High values may indicate overstocking, which ties up capital and increases storage costs. Low values may risk stockouts.