The Three Bucket Theory --Dickeson

My preference is to report these measurements on a weekly basis in a rolling 13-week quarter context. Few, if any, printing companies are able to do this because they lack weekly data. The perceiver group for inventory throughput is DMOH (Days Materials On Hand.)

Calculation of DMOH is easy: divide the sum of Raw, Wip and Fig inventories by the sum of the week's materials usage. If you do it with weekly data, multiply the result by seven (days). If it's done by month, multiply by number of days in the month. Now do it separately for each of the three inventory classifications. The result is four sets of index numbers—four perceivers—to support management decisions.