Average Stock Level Formula

Average Stock Level Formula

Average stock level formula has shown below. Average stock level formula has been explained with an example.

Average Stock Level= Minimum level + (Reorder level/2)

Average Stock Level Formula Example

Minimum level Requirement= 40,000

Re order level or Point = 30,000

Calculate Average Stock Level?

Solution

Average Stock Level = Minimum level + (Reorder level/2)

= 40,000 + (30,000/2)

= 55,000 (Average Stock Level)

Advantage of Average Stock Level

Average Stock level offers a balanced solution, and therefore is preferred by many organizations. Average stock level is above the minimum level and below the maximum level.

Average Stock Level Formula
Maximum Stock Level Formula
Minimum Stock Level formula
Re Order Level Formula