Work out weeks of supply instantly with clear inputs, formula shown and shareable results.
Weeks of supply converts an inventory position into time at the current rate of sale, which is how retail buyers actually think. Including units on order is essential, because a comfortable on-hand position can conceal an incoming over-buy.
Weeks of supply
WOS = Current inventory / Average weekly sales
Target inventory
Target units = Target weeks of supply x Average weekly sales
8-12 weeks for basics with reliable replenishment, 4-6 for fast fashion, and much higher for seasonal goods bought once ahead of season.
Because there is no sales history to divide by. Use a planned rate of sale until four to six weeks of actual data exist.