Zero Level Days Inventory Outstanding (DIO) is is the Ultimate Goal

Days Inventory Outstanding
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Eric Schmitz
Consultant, Belgium

Zero Level Days Inventory Outstanding (DIO) is is the Ultimate Goal

As mentioned in the definition '... The lower the DIO, the more efficient a company is...'
You can read this also in a spirit of continuous improvement: if your Days Inventory Outstanding is now 40,5, then it should become next year 35. If it is now 35, it should be 30 next year.
Zero is the ultimate goal. So, as long as it is not zero, you should improve day-by-day.

 

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