Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales
Question:
Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales (at cost) of £3 million. During the year, the inventory of decorative items turned over seven times. For the next year, Busy Bee plans to increase annual sales (at cost) by 30 percent.
a. What is the increase in the average aggregate inventory value required if Busy Bee maintains the same inventory turnover during the next year?
b. What change in inventory turns must Busy Bee achieve if, through better supply chain management, it wants to support next year’s sales with no increase in the average aggregate inventory value?
Step by Step Answer:
a To calculate the increase in the average aggregate inventory value required if Busy Bee maintains the same inventory turnover during the next year y...View the full answer
Operations Management Processes And Supply Chains
ISBN: 9780136860938
13th Edition
Authors: Lee J. Krajewski, Manoj Malhotra
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