Auto parts inventory management software
- Inventory turns a year
- 4.0
- Computed on this page from the inputs below
- Days of stock on hand
- 91
- Computed on this page from the inputs below
- Weeks of stock on hand
- 13.0
- Computed on this page from the inputs below
- Inventory value at your target turns
- $70,000
- Computed on this page from the inputs below
Every figure on this page is computed from the inputs entered, by the method stated below it. Binstockly publishes no catalogue, no interchange table, no fitment data and no target margin: the usage, the lead times, the costs and the prices are yours, and the defaults are a worked example to replace with your own figures.
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The figures above start from a worked example (4.0). Change any input and the answer updates as you type.
Download the Auto parts inventory management software worked example (CSV)
Auto parts inventory management software, car parts inventory software by another name, is bought to stop two things: running out and sitting on stock. Turns is the figure that measures the second, and it is the one small operations are least likely to have to hand, whatever auto parts inventory system they run. Enter the parts cost of goods sold over a year, the average inventory value at cost behind it and the turns you are aiming at, and this sheet returns turns a year, days and weeks of stock on hand, the inventory value your target implies, the cash reaching that target would release and the cost of parts sold per day. On the worked example, $420,000 sold against $105,000 of average stock is four turns and 91 days on hand; pushing to six turns would mean holding $70,000 and would release $35,000 of cash. That released figure is the argument for the whole exercise, because it is money already on your shelf rather than money you have to find.
Turns, and the same figure in days
$420,000 of parts sold against $105,000 of average stock is four turns a year. The sheet also returns 91 days on hand, because days are the version a supplier rep and a bookkeeper both argue in, and it is the same fact.
What a target actually costs
Six turns on the same sales means holding $70,000 instead of $105,000. The sheet works that directly, so a target stops being an aspiration and becomes an inventory value you either hold or do not.
The cash it releases
The gap is $35,000, and it is money already on your shelf rather than money you have to find. That is the figure worth taking to whoever signs off the stock budget, and the dead stock sheet on this site says where the first slice of it is sitting.
Auto parts inventory management software: common questions
Where do I get average inventory value? At cost, not at list, and averaged over the year rather than taken at one moment. The simplest honest version is the opening and closing stock value divided by two. If the only figure you trust is a single count, use it and treat the answer as approximate.
What is a good number of turns? It depends entirely on what you sell, so this sheet asks for your target rather than publishing one. Fast-moving service parts and slow-moving body panels behave nothing alike, and a benchmark that averages them would mislead you in both directions.
Why does the sheet show days on hand as well? Because days are easier to argue about than turns. Four turns is abstract; 91 days of stock on the shelf is a sentence a supplier rep and a bookkeeper both understand.