Days on Hand Calculator
Introduction & Importance
Days on Hand (DOH) is a critical inventory management metric that helps businesses determine how many days their current stock will last based on daily usage. Understanding DOH is vital for preventing stockouts, overstocking, and ensuring optimal inventory levels.
How to Use This Calculator
- Enter your current stock quantity.
- Enter your daily usage rate.
- Select your lead time.
- Click ‘Calculate’.
Formula & Methodology
The formula for Days on Hand is:
DOH = Stock / Daily Usage
However, to account for lead time, we adjust the formula to:
DOH = (Stock + Lead Time * Daily Usage) / Daily Usage
Real-World Examples
Data & Statistics
| Industry | Average DOH |
|---|---|
| Retail | 15.8 |
Expert Tips
- Regularly review and update your DOH to account for changes in usage and lead time.
- Consider setting safety stock levels to prevent stockouts.
Interactive FAQ
What is a good Days on Hand level?
The optimal DOH level varies by industry and business, but a common target is 30-60 days.