What is forward cover?
Forward Cover is a KPI used to measure how long the current stock holding will last based on the forward sales forecast. Forward Cover is calculated by dividing stock by the average sales value of the specific forward period.
The forward period used is most commonly reflective of the longest lead time to procure more stock. For example if the longest lead time is 12 weeks. The current stock holding will be divided by the average sales value of the future 12 week sales period.
