Weeks of Coverage

Weeks of Coverage

Weeks of Coverage (also known as Weeks of Inventory, Stock Coverage, or Weeks of Stock) is a ratio that estimates the number of weeks it will take amazon to sell through its current stock of inventory.

The formula we currently use is:

Total Inventory / (Shipped Units this week)

E.g.

If the current inventory is 15 and 5 items were shipped this week, the forward looking weeks of coverage would be 3 weeks (15 items / 5 items per week). Basically its estimated you will run out of inventory in 3 weeks!

There are other ways to calculate weeks of coverage. For example, instead of taking last week sales, take the average of the past 4 weeks or even past 52 weeks of sales when trying to calculate sales volume. If you’d like to use a different method, lets chat!

Weeks of Coverage (Open PO Qty)

We also calculate weeks of coverage that includes Open PO’s. This is to take into account the items that are already in transit to the Amazon fulfillment centers.

The formula for this is:

(Total Inventory + Open PO Quantity) / (Shipped Units this week)

E.g.

If there are 15 units at amazon, 10 units in transit to amazon, and this week 3 items were sold, weeks of coverage (with Open PO Qty) would be 8.3 weeks ((15 + 10)/3).

Where is it in InsightLeap?

Weeks of coverage can be found by going to a Weekly Report > Top Products > Products Page.

Where is it in Vendor Central?

This metric can only be found in InsightLeap.