Free calculator

Stock coverage calculator

How long what you hold will actually last, in days and weeks, valued at landed cost, and measured against the one thing that decides whether it is enough: your supplier's lead time.

A stock coverage calculator divides the units you hold by how fast they sell to give days and weeks of cover. It values that stock at landed cost and compares the cover with your supplier's lead time, which is the comparison that decides whether an order is already late.

This product

What the cover is worth, and what it has to survive

Cover is only comfortable relative to how long a replacement takes to arrive.

Days of cover

33,2days

The stock runs out 11,8 days before a purchase order placed today could arrive, which is about 150 units of demand with nothing on the shelf.

Velocity

12,67

units a day

Weeks of cover

4,7

at that pace

Stock value

€8.043,00

at landed cost

Units on hand420
Sold per day−12,67
Days of cover33,2
Supplier lead time−45 days
Days short−11,8

Cover is a ratio, not a quantity: 400 units is generous on a slow product and a fortnight of panic on a fast one. The only comparison that matters is cover against lead time, which is what the reorder point calculator turns into a decision.

Get cover for every SKU, from real sales

The formula

Units tell you nothing. Days tell you everything

Four hundred units is a comfortable position on one product and a fortnight of panic on another. Converting stock into days of cover makes every SKU comparable, and makes the only question that matters answerable: will this last long enough for a replacement to arrive?

That is why the lead time is an input rather than an afterthought. Cover shorter than the lead time means an order placed today lands after the shelf is empty, so the stockout is already scheduled and the only remaining decision is how much demand falls into the gap.

Stock is valued at landed cost here, never at retail, because inventory is money already spent rather than revenue hoped for. A store with generous cover everywhere is not well run; it is financing its warehouse.

Velocityunits sold ÷ days measured
Days of coverunits on hand ÷ velocity
17Stock valueunits × landed unit cost
Slackdays of cover − lead time

Stock valued at cost is line 17 money that has not yet become a cost, which is exactly what makes it a cash question.

Where it goes wrong

Four ways cover reads better than it is

Cover is a simple ratio with four quietly unreliable inputs.

  1. Velocity measured over the wrong window

    Seven days after a campaign flatters nothing and terrifies everyone; a year of history hides a product that has doubled since spring. Thirty to ninety days of recent, ordinary trading is usually the honest middle, and seasonal products need the same season last year rather than last month.

  2. Lead time taken from the contract

    The agreed lead time and the observed one are different numbers, and only one of them has ever failed you. Use what the last few purchase orders actually took, including customs and putaway, because the shelf does not care what the contract said.

  3. Stock on hand that is not saleable

    Damaged units, customer returns awaiting inspection and stock reserved for a wholesale order are all in the warehouse and none of them can be sold to the next customer. Counting them as cover is how a well-stocked product goes out of stock.

  4. Averages across variants

    A product with plenty of cover in three sizes and none in the two that actually sell is out of stock in every way that matters to a customer. Cover belongs at the level people buy at, which is the variant, not the product.

Worked example

420 units against a 45-day supplier

The calculator’s defaults: 420 units on hand, 380 sold in the last 30 days, a landed cost of €19,15 and a supplier who takes 45 days from order to saleable stock.

That is 12,67 units a day, so the stock lasts 33,2 days and the warehouse is holding €8.043 of cost.

An order placed today arrives 11,8 days after the shelf empties, which at this velocity is 150 units of demand with nothing to sell. The reorder was due almost a fortnight ago, and no expediting changes that arithmetic now.

This is why cover is monitored rather than checked: the moment to act was when cover crossed 45 days, not when it looked low. The reorder point calculator turns that into a number to watch.

Velocity12,67 units a day
Days of cover33,2
17Stock at landed cost€8.043,00
Supplier lead time45 days
Days short11,8

Questions

Stock coverage, answered

How do I calculate stock coverage?

Divide units on hand by units sold per day. Selling 380 units in 30 days is 12,67 a day, so 420 units is about 33 days of cover. The figure is only as good as the period you measure: too short and one busy week distorts it, too long and a genuine trend disappears into the average.

How many days of cover should I hold?

Enough to outlast your lead time plus a margin for it going wrong. A 45-day supplier and a fortnight of safety means reordering at around 60 days of cover, and holding much beyond that is capital sitting on a shelf rather than prudence.

Why value the cover at cost rather than at retail?

Because stock is money you have already spent, not revenue you might earn. Valuing it at retail flatters the balance sheet and hides the real question, which is how much cash is currently unavailable because it is standing in a warehouse.

What does it mean when cover is shorter than the lead time?

That an order placed today arrives after the shelf is empty, so the stockout is already scheduled. The calculator shows how many units of demand fall into that gap, which is the honest cost of the delay: not a shortage in units but lost orders.

Should slow-moving stock be handled differently?

Yes, and the ratio itself will warn you: a product with a year of cover is not well stocked, it is capital that has stopped working, plus storage and obsolescence. Those SKUs are usually better discounted out than reordered around.

Cover for every SKU, from the sales that actually happened

nouz computes velocity, cover and stock value per variant from your own orders and your own costs, so the products drifting toward a stockout surface before they get there.