Definition
Days of inventory (DOI / DSI) expresses how many days stock would last at recent sales, or how many days of COGS sit in inventory. Ecommerce ops teams usually mean on-hand ÷ daily units; finance may use (average inventory ÷ COGS) × period days.
Formula
Finance view: DOI = (average inventory value ÷ COGS) × days in period
Worked example
On hand 1,200 units, 40 sold/day → 30 DOI. If that is above your target band, you are overstocked on that SKU.
Why it matters for replenishment
DOI spots ageing cash traps early and pairs with sell-through when reviewing a season or PO.