10-1. Pendleton Mills manufactures wool fabric from two primary raw materials, wool and dye. Work-inprocess includes carded wool, spun yarn, and undyed cloth, while finished goods includes three grades of dyed cloth. The average inventory amounts on hand at any one time for each of the last four years and the corresponding unit costs are as follows:

The company operates 350 days per year, and its cost of goods sold for Years 1 through Year 4 were $11.8 million, $13.2 million, $14.7 million, and $16.6 million, respectively.

a. Determine the number of inventory turns and the days of supply for each of the four years.

b. As the company has grown, does it appear that the company's supply chain performance has improved? In what ways? Be sure to explain your answer.

c. If the company wants to improve its supply chain performance, what items should it focus on? Explain your answer using information from the text.

Unit Cost Inventory Unit Cost Inventory Unit Cost Year 4 Year 2 Year 3 Year 2 3 Year 4 Raw Year 1 Year 1 Materials Dye 122,500 $4.70 92400 $3.20 99800 $3.60 108700 4.10 $5.30 157800 $6.10 175100 $2.90 84,000 140900 Work in Process Undyed cloth 2500 $11.80 2700 S12-50 2900 $13.00 1,000 $25.30 S11.00 57600 S770 70800 S890 85700 $10.50 Carded wool 2,400 48,000 1200 $34.20 1400 Spun yarn Finished Goods Grade 1 cloth 250 S66.50 300 S2910 350 $95.00 720 $116.80 Grade 2 cloth 30000 ST8.50 350 $82.30 360 $85.50 370 S88.10 Grade 3 cloth 450 S114.500 500 $120.20 540 $127.40 600 $138.90