Based on the following information, how many days of supply of inventory is the firm holding (assume 260 days of operation per year)? Do not round intermediate calculations. Round your answer to one decimal place. Sales Cost of goods sold Gross profit Overhead costs Net profit Total inventory Fixed assets Long-term debt $8,300,000 $7,020,000 $1,280,000 $700,000 $580,000 $2,700,000 $3,300,000 $2,800,000 Inventory days' supply: days supply Interpret your answer if the industry average inventory days supply is 25 days. Round your answer to one decimal place. times If the industry average days supply is 25 days and this firm's IDS is more, they -Select- inventory management problems. Alpha Medical Manufacturing (AMM), located in Punta Gorda, Florida, produces medical devices for orthopedic surgery including replacement parts for human knees, hips, and elbows, and surgical tools. One product they assemble in their factory is a special aluminum alloy surgical screw used to anchor human tissue to the bone. The screw consists of four component parts, one being the aluminum alloy while the other three parts are made of medical grade plastics. AMM is evaluating three Tier 1 suppliers to manufacture the aluminum part of the orthopedic screw. Annual demand for this item is 30,000 units per year, with 365 days in a year. Other information is shown in the table below. Alpha Medical Manufacturing (AMM) Outsourcing Information for a Surgical Screw Contract Price per Price per Tariff Transport Order Cost to Store Order Lead Manufacturer Unit (C) @ Unit (C) @ Cost (T) Mode Cost Costs One Unit per time in (Tier 1 Supplier) Q = 15,000 Q = 30,000 per Unit (Tm) per Unit (Co) Year (Ch) Days Xiajing Supplier $1.09 $0.17 $0.40 $535 $1.25 130 Boston Medical $1.27 $1.11 $0.00 $0.10 $325 $1.25 110 Supplier Werkzeug $1.42 $1.07 $0.19 $0.30 $350 $1.25 140 Supplier $0.90 a. What is the total annual logistics cost for each supplier when Q = 15,000 and Q = 30,000? Do not round intermediate calculations. Round your answers to the nearest dollar. Order Quantity (Q) 15,000 units 30,000 units Global Supplier Xiajing Supplier Boston Medical Supplier $ Werkzeug Supplier b. What supplier and order quantity do you recommend based on these total costs? The company should choose -Select- and the order quantity of -Select- units. Claiken Incorporated is a supplier of axles for light trucks. They held an average axle inventory of $1.2 million last year, with a cost of goods sold of $22.0 million. What is the inventory turnover for axles? Round your answer to two decimal places. current axle turnover rate A customer wants them to increase its inventory turnover rate to 22 by implementing better inventory and operating practices. What average axle inventory level is needed to meet this 22-turn target? Round your answer to the nearest dollar. As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.8 million, cost of goods sold of $21.9 million, 32 operating weeks a year, total average on hand inventory of $2,350,000, accounts receivable equal to $2,425,000, and accounts payable of $3,710,000. What is the cash-to-cash conversion cycle in weeks? Do not round intermediate calculations. Round your answer to one decimal place. week(s) What recommendations can you make to improve performance? accounts receivable weeks of supply or -Select- accounts payable weeks of supply are ways to improve -Select- inventory weeks of supply and -Select- overall firm performance. Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain product experienced 3.9 turns last year, with an annual sales volume (at cost) of $972,000. What was the average inventory value for this product last year? Round your answer to the nearest dollar. What would be the average inventory level if inventory turns could be increased to 6.5? Round your answer to the nearest dollar. Andrew Manufacturing held an average inventory of $1.1 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $5.6 million. The firm operates 285 days a year. What is the inventory days supply? Do not round intermediate calculations. Round your answer to one decimal place. Inventory days' supply (IDS): days What target inventory level is necessary to reach a 25- and 15-day inventory days supply during the next two years? Do not round intermediate calculations. Round your answers to the nearest dollar. Target inventory level (25-day): $ Target inventory level (15-day): $