# Inventory Coverage

{% hint style="info" %}
**Quick Answer:** An inventory coverage report shows weeks of supply remaining per SKU, based on current on-hand inventory and your active forecast rate. In Moselle, Mo can build one in under 5 minutes from your live data.
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## What is an Inventory Coverage Report?

**An inventory coverage report** shows how many weeks of supply remain for each SKU at the current forecasted rate of demand. It answers one of the most fundamental questions in inventory management: *how long will this stock last?*

Coverage is expressed in weeks because it connects directly to action. If a SKU has 6 weeks of coverage and your supplier lead time is 10 weeks, you are already late to reorder — even though the shelves are not empty yet.

### Why Inventory Coverage Reports Matter

* **Prevent stockouts before they happen:** Low coverage flags SKUs that will run out before your next shipment arrives
* **Surface overstock early:** High coverage identifies inventory tying up cash or warehouse space before it becomes a write-off problem
* **Drive reorder decisions:** Coverage compared against lead times tells you exactly which SKUs need a purchase order now vs. in 4 weeks
* **Prioritize attention:** Reviewing a ranked list of coverage from lowest to highest ensures your team works on what matters most

## What Makes a Great Inventory Coverage Report?

The most actionable coverage reports are:

* **SKU-level:** Aggregate brand-level coverage numbers obscure the SKUs that are genuinely at risk
* **Forecast-based:** Coverage built on historical averages can be misleading if demand is seasonal or trending. Using the active forecast gives a more accurate picture of how long stock will actually last
* **Warehouse-specific:** Coverage across warehouses does not tell you whether a specific fulfillment location is at risk. Break it down by location when it matters
* **Threshold-flagged:** A status column that labels SKUs as At Risk, Healthy, or Excess makes the report scannable and actionable in seconds

### Key Metrics to Include

| Metric                     | What It Tells You                                 |
| -------------------------- | ------------------------------------------------- |
| On-hand inventory (units)  | Current stock available for the period            |
| Forecasted weekly demand   | Expected rate of consumption going forward        |
| Coverage in weeks          | How long current stock will last at forecast rate |
| Lead time                  | How many weeks until new stock can arrive         |
| Coverage vs. lead time gap | Whether you have enough time to reorder           |
| Status flag                | At Risk, Healthy, or Excess classification        |

## Before You Start: Make Sure Your Data Is Clean

* [ ] **Inventory is fully synced.** Confirm your warehouse or WMS connection is current. Stale inventory numbers produce unreliable coverage calculations
* [ ] **Your active forecast reflects current demand.** Coverage built on a flat or uncalibrated forecast will overstate or understate how long stock will last
* [ ] **Lead times are set in Moselle.** Coverage is most useful when you can compare it directly against the time it takes to receive a new shipment
* [ ] **Committed inventory is accounted for.** If units are allocated to open orders, they may not be truly available for future demand — clarify whether you want available or total on-hand in your prompt

## How to Build an Inventory Coverage Report with Mo

**Time Required:** 5 minutes **Difficulty:** Beginner

{% stepper %}
{% step %}

### Open Mo and Set Your Context

Click **Mo** in the left sidebar to open the chat page. Start with a prompt that specifies the scope and any coverage thresholds you care about:

> "Show me inventory coverage in weeks for all active SKUs"

> "Which SKUs have less than 8 weeks of coverage right now?"

> "Give me a coverage report ranked from lowest to highest weeks of supply"

The more specific you are about scope and thresholds, the more directly actionable the first output will be.
{% endstep %}

{% step %}

### Review the Output

Mo will return a SKU-level breakdown showing on-hand inventory, forecasted weekly demand, and calculated weeks of coverage. Start by scanning the bottom of the list — critically low coverage SKUs need your attention first.

Look for:

* **SKUs under your reorder threshold** (typically 6–8 weeks, depending on your lead times) — these need a purchase order conversation
* **SKUs with very high coverage** (16+ weeks) — these may represent overstock worth reviewing for promotions or future buy adjustments
* **SKUs near your lead time boundary** — coverage that looks adequate but falls within your supplier's lead time window is a silent risk
  {% endstep %}

{% step %}

### Layer in Lead Times

Compare coverage against your supplier lead times to identify the SKUs where the math is already tight:

> "Which SKUs have a coverage that's lower than their lead time?"

> "Flag anything where coverage is within 2 weeks of the lead time"

This is the step that converts the report from informational to genuinely urgent. A SKU with 9 weeks of coverage sounds fine — until you realize the supplier takes 10 weeks to ship.
{% endstep %}

{% step %}

### Refine and Filter

Narrow the report to match your focus:

* Add `"across all warehouses"` or `"AMS East only"` to scope by location
* Add `"excluding FBA"` to strip out Amazon inventory and focus on owned stock
* Add `"flag anything under 6 weeks"` to highlight at-risk SKUs
* Add `"show only At Risk SKUs"` to focus purely on the urgent items

Common follow-up asks:

> "Which SKUs in this list already have an open PO?"

> "Break this down by warehouse location"

> "Export this as an Excel file"
> {% endstep %}

{% step %}

### Save as a Favourite

Once the report is producing reliable output, save it for weekly reuse.

Type **"Save this chat as a prompt"** → copy Mo's output into a new chat to verify it runs correctly → then save it as a favourite called **Weekly Inventory Coverage**.

{% hint style="success" %}
Running this report alongside your Weekly Sales Recap gives you a complete picture of both demand and supply health every week.
{% endhint %}
{% endstep %}
{% endstepper %}

## How to Read Your Inventory Coverage Report

| Coverage Range       | What It Means                                      | Recommended Action                              |
| -------------------- | -------------------------------------------------- | ----------------------------------------------- |
| Below lead time      | Critical — stockout risk before reorder can arrive | Expedite purchase order immediately             |
| Lead time to 8 weeks | Low — monitor closely                              | Confirm PO is in pipeline                       |
| 8–16 weeks           | Healthy                                            | No immediate action needed                      |
| 16–24 weeks          | Elevated — cash tied up                            | Review promotional options or pause future buys |
| 24+ weeks            | Excess — significant overstock                     | Escalate for leadership review                  |

{% hint style="warning" %}
Adjust these ranges based on your specific lead times and order minimums. A brand ordering from overseas with a 14-week lead time needs to act far earlier than one with a domestic 3-week lead time.
{% endhint %}

## Best Practices for Inventory Coverage Reports

**Use forecasted demand, not historical averages.** If your brand is growing or seasonal, historical averages will understate how fast you're selling. Always build coverage calculations from your active, calibrated forecast.

**Run it weekly alongside your WOS report.** Coverage and WOS measure the same thing differently. Running both together as a cross-check gives you more confidence in the numbers before acting on them.

**Don't ignore high-coverage SKUs.** Overstock is a cost, not just a comfort. Inventory holding costs, warehouse fees, and tied-up cash add up quickly. Flag excess SKUs and bring them into your planning reviews.

**Set a standard coverage threshold for your business.** Most brands work with a "healthy range" — typically between 8 and 16 weeks — adjusted for lead times and order minimums. Define yours once and use it consistently across all coverage reviews.

**Account for FBA separately.** Amazon FBA inventory behaves differently from owned warehouse stock. Blending them can make coverage look higher than it is for channels you actually control.

## Frequently Asked Questions

<details>

<summary>What is the difference between inventory coverage and Weeks of Supply (WOS)?</summary>

They measure the same concept. Inventory coverage and WOS are both expressed as the number of weeks your current stock will last at the forecasted demand rate. The terms are used interchangeably in most planning contexts.

</details>

<details>

<summary>Should I include in-transit inventory in my coverage calculation?</summary>

It depends on the decision you're making. For reorder timing, include in-transit — it tells you the total supply you have incoming. For immediate stockout risk, use only confirmed on-hand inventory. Specify in your prompt which view you need.

</details>

<details>

<summary>How do I handle new SKUs with limited sales history?</summary>

New SKUs with less than 4–8 weeks of history may not have a reliable forecast yet. For these, ask Mo to flag them separately and use a manual demand estimate or a comparable SKU's velocity as a proxy until enough data has accumulated.

</details>

<details>

<summary>How often should I run an inventory coverage report?</summary>

Weekly is the recommended cadence for active inventory management. Demand and on-hand quantities shift constantly — a report that looked healthy on Monday can look very different by Friday if a large order ships or a channel syncs late.

</details>

## Related Guides

{% content-ref url="/pages/ZiMAO4xUpdTQI2yoZWu5" %}
[Weeks of Supply (WOS) Report](/analytics/reporting/mo-reports/mo-standard-reports/wos-report.md)
{% endcontent-ref %}

{% content-ref url="/pages/BLYuS7JNKRRnLCvAu8sJ" %}
[Weekly Sales Summary](/analytics/reporting/mo-reports/mo-standard-reports/weekly-sales-summary.md)
{% endcontent-ref %}

{% content-ref url="/pages/aYMGZMjVZa0NMZNaCeKo" %}
[Forecast vs Actuals](/analytics/reporting/mo-reports/mo-standard-reports/forecast-vs-actuals.md)
{% endcontent-ref %}

{% content-ref url="/pages/DAsnRIRTbbjM6bgR0RLM" %}
[Save Your Favourite Prompts](/mo/tips/save-favourite-prompts.md)
{% endcontent-ref %}


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