Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

17. U.S. Airfilter has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are

image text in transcribed
image text in transcribed
17. U.S. Airfilter 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: Page 468 Quarter 1 (January through March) Quarter 2 (April throw Sales (total quarter): United States 300 350 Canada 75 60 Europe 30 33 Cost of goods sold (total quarter) 280 295 Raw materials at the Louisville plant (end-of-quarter) 50 40 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 Distribution center Inventory (end-of-quarter): United States 25 27 Canada 10 11 Europe 5 All amounts in millions of U.S. dollars. a. What is the average inventory turnover for the firm? b. If you were given the assignment to increase inventory turnover, what would you focus on? Why? 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

2nd edition

1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025

Students also viewed these General Management questions