Supply Chain & Procurement worked example

Vendor Managed Inventory Days with on-hand stock at the vmi bin of 2,300 units: a worked example

Suppose on-hand stock at the vmi bin falls to 2,300 units. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimate VMI coverage from vendor stock, daily usage, and policy factor.

The inputs for this scenario

  • On-hand stock at the VMI bin: 2,300 units (the input this scenario stresses; the baseline uses 4,500)
  • Average daily consumption: 300 units / day (held at the documented default)
  • Buffer safety multiplier: 1.2 x (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Protected days = inventory on hand ÷ daily usage ÷ safety multiplier.
  • Protected days of supply works out to 6.39 days at these inputs, and this is the headline figure for the scenario.
  • Unprotected days works out to 7.67 days at these inputs.
  • Inventory works out to 2,300 pieces at these inputs.
  • Daily usage works out to 300 pieces / day at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where on-hand stock at the vmi bin sits at 4,500 units and the headline result is 12.5 days, this scenario comes in 48.89% below the baseline at 6.39 days.
  • It converts on-hand stock and daily usage into protected days of supply by dividing raw cover by a safety multiplier. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Protected days of supply: 6.39 days (headline result)
  • Unprotected days: 7.67 days
  • Inventory: 2,300 pieces
  • Daily usage: 300 pieces / day

Run it with your numbers

  • To rerun this with your own numbers, open the live Vendor Managed Inventory Days calculator, set on-hand stock at the vmi bin to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.