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16-17 (Algo) The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air- conditioning
16-17 (Algo) 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 relating to the value of inventory in the U.S. Airfilter supply chain: Sales (total quarter): United states Canada Europe Cost of goods sold (total quarter). Raw materials at the Louisville plant (end-of-quarter) Work-in-process and finished goods at the Louisville plant (end-of-quarter) Distribution center inventory. (end-of-quarter): United states Canada Europe QUARTER 1 (JANUARY QUARTER 3 QUARTER 4 THROUGH QUARTER 2 (APRIL THROUGH (JULY (OCTOBER THROUGH THROUGH MARCH) JUNE) SEPTEMBER) DECEMBER) All amounts in millions of U.S. dollars 324 738 584 470 150 108 150 97 65 42 41 25 393 704 578 439 89 46 83 33 66 108 185 141 259 70 45 39 51 11 16 21 18 5 4 6 (end-of-quarter) United states Canada Europe 70 11 5 39. 51 21 18 9 6 a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) Average inventory tumover Check my work b. If you were given the assignment to increase inventory turnover, what would you focus on? Reduce the amount of inventory or increase sales or both O Reduce the amount of inventory or reduce sales or both O Increase the amount of inventory or increase sales or both c. The company reported 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 your answer to 2 decimal places.) Weeks of raw material supply
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