Inventory Days On Hand Calculator

Introduction & Importance

Inventory days on hand (DOH) is a critical metric for businesses to manage their inventory levels effectively. It indicates how many days it takes to sell off the current inventory…

How to Use This Calculator

1. Enter the average daily sales, purchases, and inventory levels.
2. Click ‘Calculate’.
3. View the results and chart below.

Formula & Methodology

The formula for inventory days on hand is:

DOH = (Average Inventory / Average Daily Sales) – (Average Daily Purchases / Average Daily Sales)

Real-World Examples

Data & Statistics

Average Inventory Days on Hand by Industry

Industry	Average DOH
Retail	105
Manufacturing	120

Expert Tips

• Regularly review and adjust your DOH to optimize inventory levels.
• Consider seasonality and trends when setting your target DOH.

Interactive FAQ

What is a good inventory days on hand?

The optimal DOH varies by industry and business, but as a general rule, aim for 30-60 days.

How can I improve my inventory days on hand?

Improve forecasting, optimize ordering processes, and consider using safety stock.

Source: U.S. Census Bureau

Source: U.S. Bureau of Labor Statistics