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ABC Days-on-Hand Profile

The figure is an example ABC Days-On-Hand Inventory Profile.  The profile illustrates the average days-on-hand of inventory in ABC item tegories. Days-on-hand reporting is often more effective than percentages or turns because of the mental comparison that is easily made between days-on-hand and typical item lead times.nThe example is typical, where C items may have nearly a year or sometimes many more days-on-hand.  In the example, nearly 70% of the items have an average of 230 days-on-hand (more than 6 months worth of supply).  Depending on the type of business (this was a retail business), this often represent a dramatic opportunity for inventory reduction through item elimination and/or outsourcing the supply of those items.

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