- Average inventory is a calculation that estimates the cost or quantity of a particular item or set of items over two or more specific time periods.
- Average stock is the average stock value over a certain period of time, which may differ from the median value of the same data set.
- Inventory averages can be used as a point of comparison when looking at total sales, allowing the business to track inventory loss.
- Inventory rolling average allows a company to track inventory from the last purchase made.
- Inventory management is a key success factor for companies as it allows them to better manage their costs, sales and business relationships.