Average Inventory Cost

Average Inventory Cost

Average inventory Cost is used to estimate the cost of inventory that a business typically has on hand over a longer time period than just the last month.

Average inventory cost is a calculation comparing the cost or purchase price of a particular good or set of goods during two or more specified time periods. Average inventory is the mean value of an inventory throughout a certain time period, which may vary from the median value of the same data set. 

(Current Inventory + Previous Inventory) / 2

Previous inventory levels are $9000, $8500 and $12000.
Also current inventory is $10000
Average inventory will be (9000 + 8500 + 12000 + 10000) / 4 = $9875


added a year ago

- Gross Margin Return on Investment (GMROI)
- Average Inventory Cost
- Average Inventory Level
- Gross Margin Percentage (GM %)
- Gross Margin (GM)
- Cost of Goods Sold (CoGS)
- Inventory Deployment
- Network Design & Scenario Modeling
- Allocation & Supply Planning
- Production Planning
- Demand Forecasting & Planning
- Performance Tracking
- Omni Channel Fulfillment
- Closed Loop Supply Chains
- Transportation Planning & Optimization
- Replenishment & Fulfillment
- Inventory Planning & Optimization
- 10 Rules for Supply Chain & Logistics Optimization
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