What do you mean by average stock level?
What do you mean by average stock level? Average stock level is the average quantity of stock for a given time of period. Computation of Average Stock Level: The formula is as follows: Average stock level = 1/2[Minimum Level + Maximum level] or Average stock level = Minimum level + 1/2 [Re-order Quantity] What are the stock levels? Stock level refers to the amount of goods or raw materials that should be maintained by businesses to continue their activities and avoid any situations like understocking or overstocking. Every organization should always keep an optimum amount of inventory to ensure the...