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3 - Setting days of stock
3 - Setting days of stock

Choosing the days of stock

Bahadir Efeoglu avatar
Written by Bahadir Efeoglu
Updated over 7 months ago

Step-1

What is the days of stock?

Days of stock (DOS) basically defines how often do you want to replenish a product. Combining your preferences of DOS with the sales performance of a product, we calculate the suggested restock quantities for your next purchase order.

In Fabrikatör, the default DoS is preset to 30 days. This means that when you create a new account or sync new products, the default DoS for those products is automatically set to 30 days.

Step-2

How to decide on DOS?

There is no golden rule for that but here's our humble advice.

The lead time of the product should be your reference point when setting DOS.

As a rule of thumb, for high-performing products, the DOS should be greater than their lead time. In this way, you minimize the risk of running out of stock until the next replenishment cycle.

By following the same logic, you may decide to set DOS less than the lead time in order to minimize the risk of overstocking.

Scenarios
Scenario 1: DOS Greater than Lead Time: Imagine your lead time for a product is 10 days, but your DOS is set to 15 days. This means you're restocking the product before it runs out, ensuring continuous availability. It minimizes the risk of stockouts but might lead to higher inventory levels.


Scenario 2: DOS Less than Lead Time: If the lead time is 10 days and your DOS is set to 7 days, you'll be ordering more frequently, but in smaller quantities. This approach reduces the risk of overstocking and lowers inventory holding costs, but it increases the risk of stockouts, especially if there's an unexpected spike in demand or a delay in replenishment.

Both approaches have their own risk and you should decide on those based on your supply and cash flow cycles.

Step - 3

How to Set Days of Stock on setup guide?

During the setup guide, you'll have the opportunity to specify your preferred Days of Stock. This value will be applied to all products initially and will also be used for any new products added to your inventory. It's recommended to review and adjust this default lead time as needed to optimize your inventory management processes.

Adding Days of Stock to Products:

Check out this 20-second video to learn how to add "days of stock" per product group.

Alternatively, you have the option to update days of stock on product page or by importing them directly from the Products Page. For additional details, refer to this article.

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