DAYS OF INVENTORY (DOI)

Like a living creature, in the world of logistics also has what is called the age or ages.

Usually associated with the age of the stock that settles in the warehouse or storage.

Age is commonly known as DAYS OF INVENTORY or abbreviated DOI.
Age itself illustrates the power of endurance or inventory to stock for the future
Age value of stock obtained from the end of the stock value divided by the value of supply out.

Here for example,

 

For an item A  i.e

Number of stock at the end of a product-Day (SA) = 1000
Number of Supply Out (things out) on the day H (SO) = 200
So simply DOI value or age of stock item A is
= SA / SO
= 1000/200
= 5 days
So the value of stock resilience to items A is 5 days ahead.
The question is, whether the 5-day value is the value of a good or ideal for an old stock?

The answer is Not Always…
Stock Age standards depending on the length of supply runs from the previous point to the next point.
A simple example is the travel time value or the value Leadtime Shipping from suppliers to manufacturing.
Will differ between lead time value sent to jabotabek to send a product to Papua or Kalimantan, for example.

continued ..

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