Which statistic reflects how many days, on average, it would take to sell the entire inventory?

• A. ITOR
• B. DOH
• C. Days of Supply
• D. Cycle Stock

Answer: (C)

This question focuses on how long current inventory will last at the current sales rate. Days of Supply is the metric that directly answers that by estimating how many days the inventory on hand will cover if demand continues as it is today. It’s essentially the length of time you can sell the existing stock before you run out, based on the present pace of sales or usage.

A practical way to think about it: if you have inventory and your daily sales average is known, dividing the amount you have by that daily usage gives you the number of days you can sustain sales before needing new stock. For example, with 1,000 units on hand and a daily sell-through of 100 units, you’d have a 10-day supply.

This differs from inventory turnover, which measures how many times inventory cycles through in a period (a rate, not a days-to-sell figure). Days on hand is sometimes used interchangeably with a similar term, but the typical concept tested here is the specific “days of supply” metric. Cycle stock refers to inventory kept to cushion against lead-time variability and isn’t a direct measure of how long stock will last.