A firm sold 2000 tops last quarter, and currently has an inventory of 600 tops. What is the inventory/sales ratio for tops? What would be the ideal amount of inventory for tops if the target ratio is 0.5?

Hint: Take tops inventory/sales to find your ratio. Take tops sold x your target ratio to find your ideal top inventory.

Ratio of 0.4 and inventory of 1,300

Ratio of 0.2 and inventory of 1,200

Ratio of 0.3 and inventory of 1,000

Ratio of 0.35 and inventory of 1,500

Question 2

Calculate the target inventory in the table below using a target inventory/sales ratio of 0.5:

Target Inventory

Tops

Pants

Current Inventory

600

1000

Projected Sales

1900

1800

Target Inventory

Purchase Amount

Hint: Take projected sales x sales ratio.

Group of answer choices

Tops: 930 and Pants: 920

Tops: 950 and Pants: 900

Tops: 900 and Pants: 950

Tops: 900 and Pants: 900

Question 3 ?

If the inventory/sales ratio for the quarter is 0.3, how many days inventory does the store have? Assume 90 retail days in the quarter.

Hint: Take days x the ratio.

30

27

29

25