What is inventory days of supply in SAP IS-A-DBM - Dealer Business Management?

SAP Term: inventory days of supply

• Component: IS-A-DBM

• Component Name: Dealer Business Management

• Description: The period of time during which a vehicle remains unsold.

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• Key Concepts: 
  Inventory Days of Supply (IDoS) is a metric used in SAP IS-A-DBM Dealer Business Management to measure the amount of inventory on hand relative to the amount of inventory needed to meet customer demand. It is calculated by dividing the total inventory on hand by the average daily sales over a given period of time. This metric helps dealers understand how much inventory they need to keep on hand in order to meet customer demand.
  
  How to use it: 
  In order to calculate Inventory Days of Supply, dealers must first determine their average daily sales over a given period of time. This can be done by taking the total sales for that period and dividing it by the number of days in that period. Once this is done, dealers can then divide their total inventory on hand by their average daily sales to get their Inventory Days of Supply. 
  
  Tips & Tricks: 
  It is important to note that Inventory Days of Supply is an important metric for dealers, but it should not be used as the sole indicator of inventory levels. Other factors such as seasonality, customer demand, and supplier lead times should also be taken into consideration when determining inventory levels. 
  
  Related Information: 
  Inventory Days of Supply is closely related to other metrics such as Inventory Turnover and Stockout Rate. Inventory Turnover measures how quickly a dealer is able to sell their inventory, while Stockout Rate measures how often a dealer runs out of stock. Both metrics are important for understanding a dealer’s inventory management practices.