Example of a weighted average of the inventory levelThe 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
In this example, the weighted average inventory level for all plan periods is computed as follows:
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