Vehicle Units Days Supply

Vehicle Units Days Supply

Formula:

Step One

Number Retail Sales for Previous Month	=	#
*divided by:*		/
Actual Number Sales Days	=	#

Equals DAILY SALES RATE	=	#

Step Two

Inventory - # of Units	=	#
*divided by:*		/
DAILY SALES RATE (from Step One)	=	#

Equals DAYS SUPPLY OF UNITS	=	#

GOAL FOR PROFITABILITY:

45 DAY INVENTORY TURN

Vehicle Unit Days Supply

Example Calculation

Formula:

Step One

Number Retail Sales for Previous Month

=

24

divided by:

/

Actual Number Sales Days

=

26

EQUALS DAILY SALES RATE

=

0.92

Step Two

Inventory - # of Units

=

72

divided by:

/

DAILY SALES RATE (from Step One)

=

0.92

Equals DAYS SUPPLY OF UNITS

=

78

GOAL FOR PROFITABILITY:

45 DAY INVENTORY TURN