Days On Hand Inventory (DOHI) is a metric used to measure how many days a company’s inventory will last if sales remain constant. It reveals how well companies are utilizing their inventories and can be an indicator of supply chain efficiency. Calculating DOHI involves taking the average inventory and dividing it by the cost of goods sold for the same period, then multiplying this number by the number of days in the period. A higher DOHI means that the company has enough stock on hand and is managing their inventory efficiently. On the other hand, a lower DOHI may indicate inefficient inventory management or a lack of resources. By understanding their DOHI, businesses can take steps to improve their inventory processes, keep costs down, and reduce waste.