When you would like to see how long stock will last, there are several metrics available in Inventory Planner to show you when a stockout is forecasted. The most common metrics to use are 'sells out in,' 'sells out in first,' and 'stock cover in days'.
Read on for definitions of these metrics as well as examples to help explain the difference between them.
Sells Out In
The number of days until a product will be out of stock.
'Sells out in' starts with your forecast, then takes into consideration your current stock and any items on order to calculate when you'll run out.
Sells Out In First
If there are products on a purchase order "Sells Out In First" will indicate if there is a predicted stock out before products arrive.
Stock cover in Days
The number of days the available inventory will last based on the forecast.
The last date to place an order to avoid running out of stock, or the current date if/when stock is predicted to run out prior to when more stock can be received (based on the forecasted sales during the Lead Time).
Note: if a Min Stock is configured, then Replenish Date is based on the last date to place an order to avoid running below the Min Stock level. If there is no Min Stock, then the Min = 0.
For other definitions and a full list of metrics and filters available in Inventory Planner, see the Glossary of Terms.
'Sells out in' and 'sells out in first' will be different if there is a stockout forecast before the next purchase order is expected to arrive.
In this example, the current stock is forecast to run out on August 1. The 'stock cover in days' will show how many days from now that is, and 'sells out in first' will show the date that the stock will be at 0.
'Sells out in' will show as October 1 because that is when the last of the stock commitment will run out. Note that 'sells out in' does not indicate that there will be a stockout starting August 1. This is where it is helpful to use 'sells out in first' and/or 'stock cover in days'.
In this example, the next purchase order is expected to arrive before the current stock on hand will run out. 'Stock cover in days' will show how long the current stock will last. This does not include any 'on order' quantities.
In this case, 'sells out in' and 'sells out in first' will both show October 1. There is no forecasted stockout before that date.
Example 3 (Replenish Date)
In this example for SKU-93C2E70D, the current stock (stock cover in days) will last for only 2 days (sells out in first). Once the Purchase Order arrives with 685 units, the stock will last for 213 days (sells out in).
Based on the current stock + incoming stock, and the forecasted sales over the course of the Lead Time (Mar 23 - Apr 6) and Days of Stock (Apr 6 - May 6), a Replenishment of 29 is recommended as of the current date.
The Replenishment gradually increases until the Replenish Date of April 19, at which point the Replenishment will represent the quantity required to satisfy the forecasted sales during the "Days of Stock" period. The "Forecast" column provides a good idea of what this will look like by then (about 308 units in this example).