There are a few ways to calculate inventory days. Most apps use the common formula including the cost of average inventory. In MyStore, the inventory days are calculated by another formula:

### Example

You've received 2 orders with 100 books each:

The first arrived at 08/10

The second arrived at 08/22

You've sold 50 books from the first order and only 25 after receiving the second one. On the 08/25 you check the stock balance.

Let's insert this data into the formula:

(((25 – 10) × 50 + ((25 – 22) × 75)) ÷ 125 = 7,8

Where:

50 – unsold inventory before receiving the second order

75 – unsold inventory after receiving the second order

125 – quantity on hand

This way inventory days are calculated more accurately and help you prevent the dead stock.