Hello,
I am at a loss for figuring out what I assume to be a very complex formula.
I need to find Days sales in inventory using information in Monthly buckets (28,28,35 calendar).
For example: May ending inventory = $8,400,000
Next 5 Months of Cogs = $8,882,000 (sum calc June-October)
Next 5 Months # Days = 154 (sum calc June-October)
Shortage= $8,400,000-8,882,000= -482,000
Shortage Days = (-482,000/October Cogs $1,727,000)* 28 days in October= 8
Answer = 154-8=146 Days
Each ending month inventory could be 4, 5 or 6 months worth. So I believe I need an array to look for the first month the inventory would be negative.
I've seen this equation done in Days and Weeks but not Months transfered in days.
Appreciate any help!
I am at a loss for figuring out what I assume to be a very complex formula.
I need to find Days sales in inventory using information in Monthly buckets (28,28,35 calendar).
For example: May ending inventory = $8,400,000
Next 5 Months of Cogs = $8,882,000 (sum calc June-October)
Next 5 Months # Days = 154 (sum calc June-October)
Shortage= $8,400,000-8,882,000= -482,000
Shortage Days = (-482,000/October Cogs $1,727,000)* 28 days in October= 8
Answer = 154-8=146 Days
Each ending month inventory could be 4, 5 or 6 months worth. So I believe I need an array to look for the first month the inventory would be negative.
I've seen this equation done in Days and Weeks but not Months transfered in days.
Appreciate any help!
