Cash & working capital
Weeks of Supply
Formula reviewed by Tahir Asif, CMA
How many weeks the inventory on hand will last at the current rate of sales: units on hand divided by units sold per week.
Weeks of supply divides the units you have by the units you are selling each week. A style with 60 units on hand and 20 sold a week has three weeks of supply. It is a forward-looking view of the same stock that sell-through describes looking back.
Compared with the weeks left in a season, it shows which styles will sell out early and which will be left with stock. A style with more weeks of supply than weeks remaining is a candidate for a markdown, and one with far fewer is a candidate for a reorder.
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