Question
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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