The Center for Inventory Management (CIM) publishes quarterly inventory ratios for manufacturing industry groups.

Required

a. How does CIM (www.inventorymanagement.com) compute its inventory ratio? What shortcomings are implicit in its calculations?

b. How would you convert CIM’s inventory ratio to the number of days’sales in ending inventory described by this textbook?

c. Access the latest Inventory Ratio Study reported on the CIM home page

(www.inventorymanagement.com) and identify the inventory ratios for two types of transportation equipment industries: motor vehicles and aircraft.Why are the ratios so different?