Weeks of cover
Weeks of cover is how long current stock will last at the expected rate of sale: stock on hand divided by forecast weekly sales.
- Measures
- How long current stock lasts at the expected rate of sale.
- Formula
- Units on hand ÷ expected units sold per week.
- Watch for
- A rate of sale inflated by a promotion or deflated by a stockout.
Updated
Meaning / 01
What it means for retail and category teams
Some teams use days of cover instead, and some include stock on order. Cover puts stock and demand in the same unit, which is why availability, allocation and markdown decisions are often set in weeks of cover. The rate of sale behind it matters: a recent promotion inflates it and a recent stockout deflates it, so a cover figure is only as reliable as the demand estimate underneath.
Stakes / 02
Why it matters
Too little cover means missed sales; too much ties up cash and space and raises the risk of markdown. Comparing cover across locations shows where moving stock can fix availability before anyone orders more.
Example / 03
Illustrative example
The business and figures are illustrative. None of it is customer data.
| Item | Cover now | Cover after moving 10 units | Result |
|---|---|---|---|
| Store A (12 on hand, sells 8 a week) | 1.5 wks | 2.8 wks | Gap closed |
| Store B (30 on hand, sells 3 a week) | 10 wks | 6.7 wks | Still covered |
Ten units moved, no new stock bought, and both stores have more than two weeks.
Read the example as text
A kettle sells 8 a week in Store A, which holds 12: 1.5 weeks of cover. Store B sells 3 a week and holds 30: 10 weeks. Moving 10 units from B to A gives A 22 units, about 2.8 weeks, and leaves B with 20, about 6.7 weeks. Store A avoids a gap before its next delivery, and the business holds no more stock than before.
Work through the calculation
Weeks of cover = usable units on hand ÷ expected units sold per week
Try your own figures and see a fuller worked example on the weeks of cover calculator.
Related / 04
Related concepts
Next step
See where cover needs attention
A single cover number is a start. Bring a product and its locations to look at demand, stock and possible transfers together.
