Days Of Inventory DOI

Days Of Inventory DOI calculation = average inventory average daily Cost Of Goods Sold

DOI is part of the logistics ratios for inventory analysis.

It measures the number of days of sales that are satisfied by the inventory. This ratio is a good indicator of the quality of inventory (obsolescence) and of the supply and inventory control efficiency. This indicator based on past values of sales has the inconvenience not to take into account seasonal and promotional variations. It can be more realistic to calculate it on the basis of sales forecasts.

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