Inventory Days of Supply
Traditional measures of inventory performance, turnover, and days of supply focus on firm may improve its performance by simply shitfing inventory to its suppliers or to customers. Supply chain inventory days of supply is focused on total inventory at all locations and is typically defined as the total finished goods inventory at all plants, warehouses, wholesalers, and retailers expressed as the calender days of sales available based on recent sales activitiy. This measure may be further extented to include raw materials and components held by manufactooring plants and suppliers. These unfinished inventories are converted to equivalent units of finished goods and include as part of the true total supply chain inventory. This measure, when adopted by all members of a supply chain, provides the focus of integrated operations.