DOI ( Days Of Inventory ) for calculating a Target Stock

DOI (Days Of Inventory) is the number of days that there should be a city stock or a particular branch. DOI Calculations (Days Of Inventory) is based on the condition of the stock of goods as compared with average sales of a particular period. DOI Calculations (Days Of  Inventory) accurate management will greatly assist in reaching a decision on the value of inventory in total.

There are many opinions to calculate DOI (Days Of Inventory), but there is a common way used by a man warehouse administration, they mostly use the formula by dividing the stock end of the month sales results.

Formula DOI used is

DOI = Stock end / (Sales for a month / work day)

There are many advantages if the DOI (Days Of Inventory) in the warehouse are monitored regularly and periodically.
1. DOI (Days Of Inventory) is used to calculate stock levels of reference / target stock
2. Calculating DOI (Days Of Inventory) can routinely be used for the analysis of a cycle of certain goods in the month.
3. DOI (Days Of Inventory) is used to reference the plan of making sales by a salesman in the company's distribution.
4. DOI (Days Of Inventory) can be used for monitoring the behavior of products, products that sell less, and products that are difficult to sell.