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Current Inventory (Units): The total number of physical units you currently have available for sale. Example: 5000 units of product A in the warehouse.
Average Daily Sales (Units): The average number of units sold per day. Example: 250 units of Product A are sold each day on average.
Inventory Days: The estimated number of days your current inventory will last at the current sales rate.
Inventory days = Current inventory (units) / Average daily sales (units)
Inventory days = 5000 / 250 = 20 days