Flavors, Fragrances & Aroma Chemicals worked example

Inventory Coverage with average daily ingredient usage of 95 kg / day: a worked example in flavors, fragrances & aroma chemicals

Push average daily ingredient usage up to 95 kg / day and the picture changes. This example computes every intermediate figure at that operating point. Use it to size inventory for volatile demand, long supplier lead times, retest dates, customer-specific ingredients, and critical single-source raw materials.

The inputs for this scenario

  • Average daily ingredient usage: 95 kg / day (raised for this scenario; the documented default is 38)
  • Supplier or internal replenishment lead time: 45 days (unchanged)
  • Safety stock on hand: 260 kg (unchanged)

Working through the calculation

  • Applying the documented formula (Inventory Coverage cycle stock = average daily ingredient usage × supplier or internal replenishment lead time) to the inputs above produces each figure below.
  • At this operating point the engine returns 0.01 days for protected days of supply, the number this scenario is built around.
  • At this operating point the engine returns 2.11 days for unprotected days.
  • At this operating point the engine returns 95 pieces for inventory.
  • At this operating point the engine returns 45 pieces / day for daily usage.

How this compares with the baseline

  • Against the tool's baseline example, where average daily ingredient usage sits at 38 kg / day and the headline result is 0 days, this scenario comes in 150% above the baseline at 0.01 days.
  • It computes required inventory coverage as cycle stock (daily usage times lead time) plus safety stock, and expresses the position you hold in days of supply. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Protected days of supply: 0.01 days (headline result)
  • Unprotected days: 2.11 days
  • Inventory: 95 pieces
  • Daily usage: 45 pieces / day

Run it with your numbers

  • Every input above is editable in the live Inventory Coverage calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.