How do I use this calculator?
The basic portion of this calculator allows you to calculate any of the three inventory values shown directly above.
Calculator Operations:
- Enter the beginning and ending inventory to calculate the average inventory.
- Enter the average inventory and ending inventory to calculate the beginning inventory.
- Enter the average inventory and beginning inventory to calculate the ending inventory.
The advanced version of this calculator allows you to calculate the optimal inventory level by considering the minimum and maximum inventory levels along with the safety stock level.
Use the calculate button when all known values have been entered and use the reset button when you want to clear the values from the calculator.
Enter the beginning inventory and the ending inventory into the Calculator. The calculator will evaluate the Average Inventory. This calculator can also determine the beginning or ending inventories when given the other variables.
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Average Inventory Formula
The following two example problems outline the steps and information needed to calculate the Average Inventory.
AI = (BI + EI) / 2
Variables:
- AI is the Average Inventory (units)
- BI is the beginning inventory
- EI is the ending inventory
To calculate Average Inventory, sum the beginning inventory and ending inventory values, then divide by 2.
How to Calculate Average Inventory?
The following steps outline how to calculate the Average Inventory.
- First, determine the beginning inventory.
- Next, determine the ending inventory.
- Next, gather the formula from above = AI = (BI + EI) / 2.
- Finally, calculate the Average Inventory.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
beginning inventory = 30
ending inventory = 100
AI = (BI + EI) / 2 = ?
