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You can do this on a rolling 13-week basis and accompany it with a chart and trend line. The cartoon (graphic) is always what you look at first. If DMOH is trending down, "Happy, Happy" as Chef Emeril Lagasse would say. The fewer the days, the faster the cash pops back into the box.
Look at the perceivers for the week just past; make a little plan for the coming week to keep the tilt downward. Execute the plan. Did it work? Days On Hand still going down? No? Try something else next week. Continuous improvement, said Dr. Deming. Constraint lifted; go to the next constraint, said Dr. Goldratt.
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