What is months on hand reporting?
Months on hand reporting is an inventory management metric that calculates how long current stock levels will last based on historical or projected usage rates. This crucial measurement helps organizations understand their inventory position and make informed decisions about purchasing and stock management.
Understanding months on hand calculations
The calculation divides current inventory levels by average monthly usage to determine how many months of stock are available. This analysis provides insights into potential overstocking or understocking situations while helping optimize inventory investments.
Key reporting elements
Essential components include:
- Current inventory levels
- Historical usage data
- Seasonal adjustment factors
- Safety stock considerations
- Demand forecasts
Business applications
Organizations use months on hand reporting to:
- Optimize inventory investments
- Identify excess stock
- Plan purchase orders
- Manage storage capacity
- Control carrying costs
Implementation considerations
Effective reporting requires attention to:
- Data accuracy requirements
- Calculation methodologies
- Regular review cycles
- Exception handling
- Performance tracking
Operational impact
Months on hand reporting helps organizations balance inventory investments with operational needs while maintaining appropriate stock levels across their product portfolio.
Parabola FAQ
Parabola is an AI-powered workflow builder that makes it easy to organize and transform messy data from anywhere—even PDFs, emails, and spreadsheets—so your team can finally tackle the projects that used to feel impossible.
With Parabola, you can automate any process across spreadsheets, emails, PDFs, & siloed systems. Whether it’s reconciling data across systems or generating the same report every week, Parabola gives teams the power to automate it—all without IT support.
Parabola integrates with virtually any system. In addition to 50+ native integrations like NetSuite & Shopify, Parabola offers an API & the ability to integrate via email. Connect to thousands of tools—and work with unstructured data like emails and PDFs.
The best Parabola use cases are recurring processes that involve complex logic and messy data coming from multiple data sources. In practice, this could look like auditing invoice PDFs, generating recurring reports, or alerting the team of discrepancies.
Teams at Brooklinen, On Running, Flexport, Vuori, and hundreds more use Parabola to automate the work they thought would always be manual. Explore more on our customer stories page.
The best way to get started is to sign up for a free account at parabola.io/signup. Our customers range from individuals to massive enterprises—so whether you'd like to start self-serve or with a guided product tour from an expert, we'll help you find the right package for your team.