<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000343" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Example of a weighted average of the inventory level</Title>
		<Keyword><Level1>Weighted average</Level1>
		</Keyword>
		<Keyword><Level1>To compute inventory levels</Level1>
		</Keyword>
	</Header>
	<AimSection><Paragraph>The average projected inventory of a <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link> is one of the performance indicators in the <GUIRef href="/baanerp/cp/rao" role="module">Resource Analysis and Optimization</GUIRef> module of <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>. SSA ERP computes it as a weighted average of the average inventory levels found for the various plan periods. The average is a weighted average in that it takes the length of each plan period into account.</Paragraph>
	</AimSection>
	<GeneralSection><ExampleSection><SectionTitle>Example</SectionTitle>
			<Paragraph>Inventory on hand = 10</Paragraph>
			<TABLE border="1"><TBODY><TR><TD>Plan period</TD>
						<TD>1</TD>
						<TD>2</TD>
						<TD>3</TD>
					</TR>
					<TR><TD>Length of plan period (days)</TD>
						<TD>2</TD>
						<TD>2</TD>
						<TD>5</TD>
					</TR>
					<TR><TD>Projected (end) inventory</TD>
						<TD>20</TD>
						<TD>30</TD>
						<TD>99</TD>
					</TR>
					<TR><TD>Average inventory level</TD>
						<TD>15</TD>
						<TD>25</TD>
						<TD>64.5</TD>
					</TR>
				</TBODY>
			</TABLE>
			<Paragraph>In this example, the weighted average inventory level for all plan periods is computed as follows:</Paragraph>
			<Figure><HTML:IMG SRC="../images/nt_flow_000343.gif" width="396" height="108" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/></Figure>
		</ExampleSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000048" role="manual">To compute average projected-inventory levels</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000310" role="manual">Performance indicators in Enterprise Planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000342" role="manual">Example of linear progression</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000344" role="manual">Example of a weighted average of a negative inventory level</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
