average stock levels

Shidailiangnv

Member
Mandarin
Hi, everyone:
I am in the UK, I am the owner of a takeaway and I have just set up my business acount. Today I got a form from the bank. I don't understand a phrase on the form which is ' average stock levels'. There is also a phrase in front of ' average stock levels' that is ' expected total card sales during the next 12 months'. I have two questions: 1. What does ' average stock levels' mean? 2. What does average refer to? Is means 12 months or one month. Thank you !
 
  • dadane

    Senior Member
    English (London/Essex)
    What does 'average stock levels' mean?
    The average amount of stock you hold at any given moment. If you have £2000 of stock on Monday, £3000 on Tuesday, and £2000 on Wednesday, your 'average stock level is £2333. It has nothing to do with how much stock you purchase or how much you sell, just how much you usually have 'in the cupboard'.

    Is means 12 months or one month. Thank you !
    Does the context suggest a twelve month period, i.e. are all the other questions about your estimates for a twelve month period? If the context doesn't help and the period is not specified then I think the onus is on you to make a realistic choice.

    NOTE. If you are really unsure then it is probably best to seek professional advice.
     
    Last edited:

    Edinburgher

    Senior Member
    German/English bilingual
    Your stock will tend to fluctuate between maximum and minimum levels. The upper limit will be determined by how much space you have to store it all, and the minimum level will be that at which you will worry that you might run out of stock, it's the level at which you will make an urgent trip to the suppliers. It is not really relevant how often these minima and maxima occur during any month or year. I would just pick a figure roughly halfway between these limits.
     
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