What is the average inventory turnover for the firm? (Round answer to 3 decimal places.) If you were given the assignment to increase inventory turnover, what would you focus on? Reduce the amount of inventory of increase sales or both Reduce the amount of inventory or reduce sales or both Increase the amount of inventory or increase sales or both The company reports that it used $500M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? ( Round to 2 decimal places)
The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data to the value of inventory in the U.S. Airfilter supply chain.
Qtr. 1 Qtr.2 Qtr. 3 Qtr. 4
(Jan-Mar) (Apr-Jun) (July-Sept) (Oct-Dec)
All amounts in millions of U.S. dollars
Sales (total quarter):
United States 414 402 502 514
Canada 135 96 126 117
Europe 41 34 42 25
Cost of goods sold (total quarter) 384 347 453 434
Raw materials at the Louisville plant 73 62 67 72
(End of quarter)
Work in process and finished goods 109 159 124 222
Louisville plant (end of quarter)
Distribution center inventory
(End of quarter):
United States 58 31 34 38
Canada 17 19 22 20
Europe 6 4 9 6
- What is the average inventory turnover for the firm? (Round answer to 3 decimal places.)
- If you were given the assignment to increase inventory turnover, what would you focus on?
Reduce the amount of inventory of increase sales or both
Reduce the amount of inventory or reduce sales or both
Increase the amount of inventory or increase sales or both
- The company reports that it used $500M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? ( Round to 2 decimal places)
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