Stock Coverage

Stock coverage is one of the parameters used for management control or logistics function.

This notion is a good indicator of the quality of supply management, stock management and purchasing practices.

Stock coverage indicates the number of days of consumption that stocks can cover. It is obtained by dividing the stock between the average consumption (sales, shipments ...) of a given period.

For example, if we have 10 units in stock and the average sale per week is 5, the coverage for this stock is 2 weeks.

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