Days Inventory On Hand Calculator
Expert Guide to Days Inventory On Hand Calculator
Introduction & Importance
Days Inventory On Hand (DIOH) is a critical inventory management metric that measures the number of days it takes to sell off your current inventory…
How to Use This Calculator
- Enter your average daily sales and average daily cost.
- Click ‘Calculate’.
- View your results and chart below.
Formula & Methodology
DIOH is calculated as: Inventory / (Cost of Goods Sold / Number of Days)…
Real-World Examples
Case Study 1: A retail store with $10,000 inventory and $500 daily sales…
Data & Statistics
| Industry | Average DIOH |
|---|---|
| Retail | 15.6 |
| Manufacturing | 42.9 |
Expert Tips
- Keep DIOH between 30-60 days for optimal efficiency.
- Regularly review and adjust your inventory levels.
Interactive FAQ
What is the optimal DIOH?
The optimal DIOH varies by industry, typically between 30-60 days.