Inventory Days of Supply, WIP

Definition

Days of supply metrics for finished goods, finished goods by plant, and Work in Process are standard industry metrics determined by dividing month ending inventory value by the average daily Cost of Goods Sold (COGS). With adequate systems this metric may be updated to reflect a dollar weighted days of supply by line item.

Formula

Tags

WIP, work in progress, inventory, cost

Metadata

Category: VRM Inventory · Added: May 17, 2026