Days of Supply and Inventory Turnover Calculator
Compute annual inventory turnover and days of supply from annual COGS and average inventory value using a 365-day year.
Description
Compute annual inventory turnover and days of supply from annual COGS and average inventory value using a 365-day year.
Days of Supply and Inventory Turnover Calculator: Compute annual inventory turnover and days of supply from annual COGS and average inventory value using a 365-day year.
When to use Days of Supply and Inventory Turnover
Use this logistics calculation for a transparent shipment, inventory, warehouse, customs, packaging, carrier, or service-level estimate when the governing units and business rules are explicit.
- Annual COGS (USD)
- Annual cost of goods sold in USD.
- Average inventory (USD)
- Average inventory value at cost in USD over the same year.
How Days of Supply and Inventory Turnover works
Compute annual inventory turnover and days of supply from annual COGS and average inventory value using a 365-day year. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.1
- Inventory turnover (turns/year)
- Annual inventory turns (annual COGS divided by average inventory).
- Days of supply (days)
- Days represented by average inventory at the annual COGS rate.
Limitations and assumptions
- Carrier tariffs, customs rules, dangerous-goods requirements, hours-of-service rules, surcharges, port terms, dimensional divisors, and service definitions vary by jurisdiction, contract, date, mode, and commodity. A calculation is not a booking, classification, or compliance determination.
- Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.
Alternative or Complementary approaches
Verify current carrier and authority documents, retain shipment dimensions and timestamps, test boundary cases, and reconcile estimates against invoices and operational scans.
References
-
Inventory management — Wikipedia contributors
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