How many items do you sell on average per day? Consumption per day expresses how many items you statistically can expect to sell per day.
WHAT:
The formula gives you a hint of how many items you can expect to sell over the next period. The calculation is based on data from 12 months without taking into account seasonal fluctuations.
WHY CALCULATE CONSUMPTION PER DAY?
Use “Consumption per day” to estimate the size of your safety stock and your reorder items. If you have “lead time” or “date for next delivery” in your data, you can calculate whether you’ll run out of an item before the next delivery.
Simple trend analysis: Compare consumption per day based on data from 12 and 3 months. By comparing consumption for a short and a longer period you’ll get an indication of whether the item changes behaviour.
COLUMNS NEEDED IN THE CALCULATION:
- Sold items 12 months (NUMBER)
- Date created (DATE)
FORMULA:
If[Sold items 12 month]<=0,0,[Sold items 12 month]/(if([The item’s age]<365, [The item’s age], 365))
NB. If “Sold items 12 months” is negative, it’s set = 0. Consumption per day is only calculated for products with more than 12 months data available.
Example:
Have you sold 7.300 pcs of an item, and has the item been stocked for longer than a year, the daily consumption is:
Sold items 12 months/365 days
7.300 pcs/365 days = 20 pcs per day
Consumption per day = 20 pcs
RELATED RECIPE:
- Adequacy in days: See how many days your stock goes.