How is Days Cover calculated in MerchantSpring for Vendor (1P)?

In MerchantSpring, Days Cover is calculated using only inventory that Amazon has received.

What Inventory Is Included?

Days Cover is based on:

• Received Inventory
  • Inventory that is physically available within Amazon’s network
  • This is effectively your current sellable inventory

What Inventory Is NOT Included?

Days Cover does not include:

• Open Purchase Orders (POs)
  • Inventory that has been ordered but not yet received by Amazon
• Any inventory that is still in transit or pending receipt

Is “Received Inventory” the Same as “Current Inventory”?

Yes — in this context:

• Received Inventory = Current Inventory
• It represents stock that Amazon has:
  • Accepted
  • Processed
  • Made available for sale

Why This Matters for Forecasting

For 1P (Vendor):

• Days Cover reflects actual available stock, not future supply
• This provides a more accurate view of:
  • How long current inventory will last
  • Immediate stock risk

However:

• It does not account for incoming inventory, so it may:
  • Underestimate future availability if large POs are inbound

Notes

• Always consider open POs separately when forecasting
• Days Cover is a current-state metric, not a forward-looking one
• Combine with PO data for a more complete inventory planning view