Average Inventory Calculator

Calculate Average Inventory



Formula

To calculate the Average Inventory (\(AI\)):

\[ AI = \frac{BI + EI}{2} \]

Where:

What is Average Inventory?

Average Inventory is a measure used to estimate the amount of inventory a company has over a specific period. It is calculated by taking the sum of the beginning and ending inventory values and dividing by two. This metric helps in understanding inventory levels and managing stock efficiently.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ AI = \frac{100 + 200}{2} = 150 \]

The Average Inventory is 150 units.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ AI = \frac{300 + 500}{2} = 400 \]

The Average Inventory is 400 units.