COVER, TURNS & EXPOSURE
Inventory Health
Translate inventory into days of supply, turns, and exposure against your stated target.
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Result
Current cover against the stated policy.
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Enter the assumptions, then calculate to see the answer, interpretation and next check.
Methodology, assumptions and limitations
DOS = on-hand inventory ÷ average daily demandExcess = max(0, on hand − daily demand × target DOS). Turns = annual COGS ÷ average inventory.
Responsible interpretation
Inventory above target indicates exposure worth reviewing. It does not automatically mean waste or obsolescence.
- DOS depends on the demand horizon and pattern.
- Use segmented targets by criticality, variability, and lead time.
- Values are estimated from unit cost or implied average unit value.