| # Example of a weighted average of the inventory level The average projected inventory of a plan item is one of the performance indicators in the Resource Analysis and Optimization module of Enterprise Planning. LN 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. Example Inventory on hand = 10
Plan period | 1 | 2 | 3
Length of plan period (days) | 2 | 2 | 5
Projected (end) inventory | 20 | 30 | 99
Average inventory level | 15 | 25 | 64.5
In this example, the weighted average inventory level for all plan periods is computed as follows: Related topics To compute average projected-inventory levels Performance indicators in Enterprise Planning Example of linear progression Example of a weighted average of a negative inventory level |