1. What is Weeks on Hand Inventory?

Weeks on Hand is a key inventory management metric that measures how many weeks of inventory you have available 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 on Hand formula:

Where:

• \( \text{Inventory} \) — Current inventory level in units
• \( \text{Weekly Sales} \) — Average weekly sales in units per week

Explanation: This simple division tells you how many weeks your current inventory will last at the current sales rate.

3. Importance of Weeks on Hand Calculation

Details: Monitoring Weeks on Hand 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 average weekly sales in units per week. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good Weeks on Hand value?
A: Ideal values vary by industry, but generally 4-8 weeks is considered healthy for most retail businesses.

Q2: How often should I calculate Weeks on Hand?
A: Weekly or monthly calculations are recommended to track inventory performance trends.

Q3: What if my sales are seasonal?
A: Use rolling average weekly sales or calculate separately for peak and off-peak seasons.

Q4: How does this differ from Days of Inventory?
A: Days of Inventory = (Inventory / Daily Sales) × 365, while Weeks on Hand uses weekly sales for a longer-term view.

Q5: Can I use this for service businesses?
A: This metric is primarily for physical inventory management and may not apply to service-based businesses.