![]() Related: 13 Financial Metrics to Track (And Why They're Important) Examples of the inventory average calculationīelow, you can explore two examples of the inventory average calculation for the number and monetary value of inventory: The number of inventory unitsĬalculating the number of units of inventory is usually helpful for procurement purposes and operations that require a specific number of units. The inventory average for the retail business for October, November and December is 150,000. It identifies the inventory levels of October as 100,000 units of footwear, its November inventory as 150,000 units and the current inventory level of December as 200,000 units. Inventory average = (Current inventory + Previous inventory) / Number of periodsĮxample: A retail business that sells footwear wants to identify its inventory average over three months for October, November and December. Below, you can explore the inventory average formula: You can technically calculate the inventory average over any time period you want, such as for a day, week, month or year. ![]() These segments are the current inventory levels, the inventory levels of past periods and the number of periods. To calculate the inventory average formula, you require three segments of information. Related: How to Become a Stock Manager: Duties, Skills and Salary Calculate the inventory average If they use inventory values from a single day in winter, it's also likely to provide an exaggerated representation of their inventory levels. If they use values from inventory levels during a single day in summer, it's unlikely to provide an accurate insight into how to manage their inventory and procurement strategies. For example, a seasonal business might have more inventory during winter. The purpose of calculating these results is to provide a business with insights into how to better manage its procurement strategies.Ĭalculating the average number or value of inventory is usually a more accurate figure for planning procurement strategies compared to using values from a single point in time. You can also use these results to calculate the inventory turnover ratio and inventory average period. The results from the inventory average calculation can outline how much inventory a business typically has within a given period. For example, you might calculate the inventory average over three months or three accounting periods. The period usually represents accounting periods. What is average inventory?Īverage inventory is a value that outlines the average number or value of inventory a business has over a period. In this article, we define the inventory average, detail the formula for calculating it, share several examples of the inventory average calculation and discuss when you can use the inventory average. Exploring how to use this calculation can help you gain valuable insights into a business' inventory activity. ![]() You can further use the results of this calculation to identify other inventory metrics, such as the inventory turnover ratio or inventory average period. The PvP focused gameplay is demanding and intense be sure you pick a path which best suits you!Įnduring Legacy - The story continues! Iterested players should check out the sequel, Archlord 2.This is an all new and improved version which still includes tantilizing PVP and the battle among players to be at the top.Average inventory, also known as inventory average, is a calculation for identifying the average number or monetary value of inventory over a given period. ![]() The soundtrack is among the best ever in the world of gaming!ĭiverse Characters - With 3 races and 8 classes, there are plenty of options for every player and playstyle. Wonderful Soundtrack - With a soundtrack created by the London Symphony Orchestra, Archlord delivers an immersive experience both graphically and audibly. With a fantastic world, a breathtaking soundtrack, and immersive PvP oriented gameplay, Archlord caters to the most demanding MMORPG enthusiasts are you among their number? Archlord Key FeaturesĬommunity - Since the official launch, Webzen worked hard to build a strong community and gaming environment through new content updates and various events.The community is close knit and supportive! Players can not only learn to master the brutal, fast-paced, and demanding PvP content, but they can also make new friends, join new guilds, and carve their name into the annals of history. Several large content updates (including one that made it free-to-play) have turned Archlord into a PvP MMORPG that rewards the strong and forgets the weak. Archlord is a Free-to-Play Fantasy MMORPG which offers 3 races, 8 classes and some of the most hardcore Player vs.
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