Days on hand
By Marji · Updated · Sources and editorial policy
Also called: days of inventory · doh
Days on hand is current inventory divided by average daily usage. It's the same information as turnover, expressed the way a kitchen actually thinks — "we have four days of chicken" is actionable in a way that "our turnover is 7.5" is not.
Formula
Days on hand = Current inventory ÷ Average daily usage
Worked example · One item at the shelf
- Chicken breast on hand
- 58 lb
- Average daily usage
- 14 lb
- Days on hand
- 4.1 days
Counted just after a delivery on a 3.5-day cycle, that is about right: one cycle of usage plus roughly half a day of buffer. Counted the night before the next truck, it would be about 3.6 days more than the schedule needs. At 9 days on hand you'd be carrying about twice the stock and testing the shelf life.
The useful discipline is a days-on-hand ceiling per category rather than per item. It converts a spreadsheet metric into a rule a manager can apply while standing in the walk-in.
| Category | Example ceiling | If an item breaches it, check |
|---|---|---|
| Fresh produce | 3 days | Par set from order habit rather than usage |
| Dairy | 5 days | Delivery frequency too low for the shelf life |
| Fresh protein | 5 days | Chasing a case price break that spoilage will eat |
| Frozen | 30 days | Freezer used as a warehouse; watch for burn |
| Dry goods | 45 days | Usually fine — cheap to hold, low risk |
Run the numbers
Par level calculator
The guide that works it through
Restaurant Inventory Turnover and Days on Hand: How to Calculate and Use Them
Calculate restaurant inventory turnover and days on hand from counts and invoices, split them by category, and read what the numbers say about pars, cash and spoilage.
Related terms
Inventory turnover
How many times you sell through your average inventory in a period — a direct measure of how much cash is sitting on shelves.
Par level
The quantity of an item you want on hand at the start of each order cycle — enough to cover demand plus a safety buffer.
Usage rate
How much of an item you consume per day or per cover — the input behind every par level and order.