2. The table below provides you with the 'Inventory turnover ratio' and 'receivable turnover ratio' of two auto-parts manufacturing firms (Firm A and Firm

Question

51 users unlocked this solution today!

2. The table below provides you with the 'Inventory turnover ratio' and 'receivable turnover ratio' of two auto-parts manufacturing firms (Firm A and Firm B). Also provided is the average values of these two metrics for the auto-parts manufacturing industry to which these two firms belong to. Efficiency Measure Firm A Firm B Industry Average Receivables turnover 1.6 6.8 3.5 Invenipry turnover 9.8 14.5 10.3 Which of these two firms is more efficient? Why? (2 points) Though the two efficiency measures are two separate efficiency ratios, there is some similarity in their logic in some way. What is the common thread between these two efficiency measures? (2 points) 3. All firms in the highly competitive soft drink industry must have a readily available, good tasting product as judged by consumers. To differentiate themselves from the other competitors, the manufacturers must improve the visibility of their product by using extensive promotion and sponsorship of events. a) In this industry, is product (brand) visibility & promotion: A) an order winner or B) an order qualifier? (1 point) b) Why is it important to identify order qualifiers and order winners in operations strategy formulation process? (3 points) competition) recruited Doug