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Measuring Supply Chain Performance Toner Corporation is a printer cartridge company whose cost of goods sold last year was R3 410 000 and the firm

Measuring Supply Chain Performance Toner Corporation is a printer cartridge company whose cost of goods sold last year was R3 410 000 and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished goods. The table below (Table 1) contains last year's average inventory level for each item, along with its value. Table 1

category

Part number

Average level

Unit value

Raw materials

1

15 000

ZAR 3.00

2

2 500

ZAR 5.00

3

3 000

ZAR 1.00

Work in progress

4

5 000

ZAR 14.00

5

4 000

ZAR 18.00

Finished goods

6

2 000

ZAR 48.00

7

1 000

ZAR 62.00

Use Table 1 above to answer the questions (a, b and c) about Toner Corporation using Table 1 above. a. What is the average aggregate inventory value being held? (8) b. How many weeks of supply does the firm maintain? (3) c. What was the inventory turnover last vear? (3) Note: Question d does not draw on any of the data from the table and must be calculated separately. d. Assume Toner Corporation had 500 suppliers and they each had 100 suppliers, how many second-tier suppliers would your firm have?

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