Literal question
Just prior to receiving a delivery of your main sales item / most important input or main sales item, how many days of inventory (days of sales)/days of production/sales does your establishment typically have on hand?
Interviewer instructions
Days of inventory of main sales item The purpose of this question is to assess the efficiency in the supply chain. When firms have to maintain a high level of sales items in stock, because they cannot rely on a predictable supply, this is a source of economic inefficiency. Inversely, if supplies of the main sales can be relied upon to be easily available, firms will keep low levels of stock on hand.
The main sales item is the item that accounts for the highest percentage of sales among all items that the establishment sells. It is not the item for which stock is maintained the longest.
Days of inventory should be calculated as how many days it would take, under normal sales conditions, to deplete the main sales item held in supply at the establishment's premises.
