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Stock time

Learn how Optiply calculates 'Stock Time'—the estimated number of days your current inventory will last based on the dynamic demand forecast.

Carla Domingos avatar
Written by Carla Domingos
Updated over 2 weeks ago

⏳ Understanding Stock Time (Days of Supply)

Stock Time indicates how long we expect your current product inventory to last before it is completely sold out.

In supply chain terms, this is often referred to as Days of Supply. It answers the critical question: "Based on expected sales, when will my shelf be empty?"

The Calculation Logic

Optiply calculates Stock Time by looking forward at the expected demand (forecast) for the coming days and subtracting it from your current stock on hand until the balance hits zero.

Stock Time = Number of days until Total Sales Current Stock

This metric is calculated as the number of days such that the total amount of sales in those coming days is equal to (or exceeds) the current stock on hand.

Calculation Example

Let's look at a practical example to understand the math.

  • Current Stock: 6 units.

  • Forecasted Sales (Next 5 Days): 4, 1, 2, 1, 1.

The Step-by-Step Countdown:

  1. Day 1: You sell 4 units. (Remaining Stock: 6 - 4 = 2).

  2. Day 2: You sell 1 unit. (Remaining Stock: 2 - 1 = 1).

  3. Day 3: You expect to sell 2 units. Since you only have 1 left, you will go out of stock (1 - 2 = -1).

Result: The Stock Time is 3 days.

Important Notes on Accuracy

  • Dynamic Nature: Please keep in mind that this metric is dynamic. It changes daily based on updates to your calculated demand forecast and changes in your actual stock levels.

  • Calculation Differences: These metrics are standard in the industry but have multiple ways of being calculated. If you notice discrepancies between Optiply and another system, it is likely because the other system uses a static formula (e.g., based on average daily sales) while Optiply uses the specific forecasted sales for the specific coming days.


❓ Frequently Asked Questions (FAQs)

Why is my Stock Time lower than I expected?

If you have a sales spike forecasted in the near future (e.g., a holiday or promotion), your Stock Time will drop rapidly because Optiply anticipates those units being sold faster than usual.

What happens if my Stock Time is 0?

A Stock Time of 0 means you are either currently out of stock or projected to run out today based on today's expected sales.

How does Stock Time differ from Stock Turnover?

  • Stock Time (Days of Supply): Forward-looking. "How long will it last?"

  • Stock Turnover: Backwards-looking. "How fast did we sell it in the past?"

Is Stock Time calculated using "Free Stock" or "Physical Stock"?

Optiply typically uses Free Stock (Physical Stock minus Reservations) for this calculation to give you a realistic view of what is actually available to sell to new customers.

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