The “inventory range” is one of the most important key figures in the area of inventory management. Essentially, the key figure indicates how long the existing stock will be sufficient to cover demand. In practice, the stock range can be related to different types of requirements. The term “actual range of coverage” is used when the currently available stock is set in relation to the requirements from actual orders. If the currently available stock is related to the sum of all planned requirements and orders, this is referred to as the “planned range of coverage”. Finally, the stock can also be related to the average daily consumption in the past. This quotient leads to the “statistical range”.
Our tip:
Pay close attention to how the reach figure is calculated, as the blanket term “reach” is often used in practice. There can be extreme differences between the statistical, planned and actual range of coverage.
