Days of Supply Formula is a widely used metric for measuring the amount of inventory available. In essence, it’s a measurement of the number of days of demand that a company’s current stock would be able to satisfy. By showing how much stock the company has relative to customer demand, the Days of Supply Formula is able to quickly and efficiently convey a sense of the company’s overall supply and customer satisfaction status. In order to calculate this value, you’ll need to have an estimate of your customer demand as well as an accurate account of your current stock level. Once these estimates are made, simply divide your total on-hand stock by your customer demand in order to produce the Days of Supply Formula value. With this simple calculation, you’ll be able to quickly assess the current health of your business’s inventory and take solid steps toward improvement if needed.