Maths question

[richardg]

Average price per part in Euros is this:

Supplier A 45.71 euros
Supplier B 48.82 euros
Supplier C 39.4 euros
Supplier D 55 euros
Supplier E 63.49 euros

Supplier % contribution to total stock is:
Supplier A 41%
Supplier B 19%
Supplier C 25%
Supplier D 6%
Supplier E 9%

What is the average price per part after weighting the supplier total % contribution to stock, please?

 

[zarniwoop]

45.71 x 0.41 + 48.82 x 0.19 + etc

 

[richardg]

45.71 x 0.41 + 48.82 x 0.19 + etc

Thanks but what do I do when I have added them all together?

Sorry % calculations when beyond 25/45*100 have always stumped me.

 

[zarniwoop]

When you have added them together you have the weighted average you are looking for.

Think of it like this. If you were buying 100 parts with these proportions, you would get 41 from A, 19 from B and so on. So you would pay 45.71 x 41 to A, 48.82 x 19 to B etc. That would give you the total paid for 100. The average is then this total divided by 100. All I did was divide by 100 up front, hence 0.41 instead of 41.

 

[Richard Lines]

If you add the five multiplications together it will give you the average price = €46.881

 

[richardg]

got it thanks​

 

[Nigel]

18.7411+9.2758+39.65+3.3+5.7141 = 76.981

76.981/100=0.76981

= €0.77 (to 2dp)