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Glossary

Inventory & availability

What is days sales of inventory (DSI)?

The average number of days stock sits before it sells.

Why it matters: The cash-flow view of turn. High DSI means cash is stuck on shelves and in warehouses.

How it's worked out: DSI = average inventory ÷ COGS × 365.

Related terms

inventory turn

How many times you sell and replace your average stock in a year.

carrying cost

The cost of holding stock: capital, storage, insurance, shrinkage and obsolescence.

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