Question 1

How are days of inventory remaining calculated?

Accepted Answer

Days of inventory remaining is calculated by dividing your current stock by the average daily sales rate. For example, if you have 300 units and sell 10 per day, you have 30 days of inventory remaining.

Question 2

What do the urgency levels mean?

Accepted Answer

Critical (red) means less than 7 days of stock remain and you should reorder immediately. Warning (yellow) is 7–14 days. Low (blue) is 14–30 days. OK (green) means you have more than 30 days of inventory.

Question 3

How is the projected stockout date determined?

Accepted Answer

The stockout date is calculated by adding the days of inventory remaining to today's date. It assumes a constant daily sales rate. Actual stockout may differ if demand fluctuates seasonally or due to promotions.

Question 4

What if a SKU has zero daily sales?

Accepted Answer

If average daily sales is zero, the calculator shows infinite days remaining since the item is not being sold. This could indicate dead stock that may need to be discounted or liquidated.

Question 5

How should I use this data to plan reorders?

Accepted Answer

Focus on SKUs in the Critical and Warning zones first. Cross-reference the projected stockout date with your supplier lead time — if lead time is longer than days remaining, you need to order immediately to avoid a stockout.

Days of Inventory Remaining Calculator

Understanding urgency levels

Stop running these numbers by hand.