Days of Supply KPI is how long will it take for a product to run out if sales continue as expected. It is evaluated in the periods based on your order cycle. This is as say you typically sell 20 items a month, you have 15 Days of Supply if you have ten items. But if your supplier needs 30 days from you sending them an order, the odds are here, you will run out. If your supplier needs seven days, well, you should be okay. This is why knowing your supplier's delivery time is here critical.
Calculating the *standard sell rate* for every item in the shop is impractical. But, not to worry as this is what your computer can help you do.
Here is an example.
If you go to stock maintenance, call up an item, now press ordering as above. The product here has two (2) on hand. The focus (which is the standard sell rate per week) is on (4) sales. Thus, we can say that you can expect to run out in a few days. If my ordering cycle is weekly, you need to place an order as soon as possible. Otherwise, you will lose sales.
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