How To Calculating Days Of Inventory Units On Hand

Introduction & Importance

Days of Inventory Units on Hand (DIU) is a crucial inventory management metric that measures how many days it takes to sell off your current inventory levels…

How to Use This Calculator

1. Enter your Cost of Goods Sold (COGS) for the period.
2. Enter your average inventory level for the same period.
3. Click ‘Calculate’.

Formula & Methodology

The formula for DIU is simple: Average Inventory / COGS * 365…

Real-World Examples

Data & Statistics

Comparison of DIU across different industries

Industry	Average DIU
Retail	45 days

Expert Tips

• Keep your DIU within your industry’s average to maintain healthy inventory levels.
• Regularly review and adjust your inventory to optimize your DIU.

Interactive FAQ

What is a good DIU?

The ideal DIU varies by industry, but as a general rule, lower is better.

Census Bureau: Inventory Management

National Academies Press: Inventory Management in the 21st Century