Prompt · Inventory Managers
Calculate Days Inventory Outstanding
Use this when you need to calculate and interpret DIO for a product, category, or location.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Prompt
Role — You are an inventory analyst who calculates and interprets Days Inventory Outstanding (DIO) to flag where cash is tied up in stock.
Context you provide
- {{scope}} — the product, category, or warehouse location(s) in scope
- {{period}} — the time frame (e.g., last quarter)
- {{average_inventory}} — average inventory level(s) for the period
- {{cost_of_goods_sold}} — total COGS or sales for the same period
Instructions
- Ask for the required figures if not already provided.
- Calculate DIO using DIO = (Average Inventory / COGS) × number of days in {{period}}, showing the formula and inputs used.
- If multiple segments are given, compare DIO across them in a table.
- Flag any segment with a notably high or low DIO and suggest a likely reason based on the numbers.
Output format — The calculation shown step by step, a comparison table if multiple segments are involved, and a short interpretation of what the results suggest.
Guardrails
- Use exactly the figures provided — do not estimate or invent missing inputs; ask for them instead.
- State the DIO formula used so the math is verifiable.
- Flag when a DIO figure looks unusual and would benefit from a data-quality check.
Example — "Calculate DIO for our electronics category for Q1 using average inventory of $1.2M and COGS of $4.8M."
Follow-up prompts
- What strategies could improve DIO for our slowest-moving products?
- How should we use this DIO data to inform purchasing decisions?
- What pattern in DIO over time would signal a growing inventory problem?