The Economic Order Quantity (EOQ) formula: EOQ = √(2DS)/H where:
WOS CalculatorWeeks of Supply is a metric used in inventory management that represents the number of weeks a company can operate based on its current inventory levels. It’s a measure of the amount of time that inventory will last before it needs to be replenished, given a certain level of demand. To calculate Weeks of Supply, you need to know the average weekly demand for a product and the current inventory level for that product. The formula for Weeks of Supply is: |
Weeks of Supply = Current Inventory / Average Weekly Demand
For example, if a company has 1,000 units of a product in inventory and sells an average of 100 units per week, the Weeks of Supply for that product would be:
Weeks of Supply = 1,000 / 100 = 10
This means that the company has enough inventory to last for 10 weeks before it needs to reorder the product.
Weeks of Supply is a useful metric for inventory management because it helps companies avoid stockouts and excess inventory. If a company has a low Weeks of Supply for a particular product, it may want to increase its inventory levels to avoid running out of stock. On the other hand, if a company has a high Weeks of Supply for a particular product, it may want to decrease its inventory levels to avoid excess inventory and the associated holding costs.