DIO
Inventory Management
DIO (Days Inventory Outstanding)
Days Inventory Outstanding
Average number of days inventory remains on hand before being sold or consumed.
Examples
- 01DIO for the plant is 64 days, meaning stock lasts about two months before it is used or sold.
- 02The material planner reviews DIO by item class each month and finds that C items have a DIO of 210 days.
- 03Smaller batch sizes and shorter supplier lead times bring DIO down to 48 days without hurting delivery.