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Problem 10.7 Delph Manufacturing Company is going to purchase an auto parts component from one of two competing suppliers. Delph is going to base its
Problem 10.7 Delph Manufacturing Company is going to purchase an auto parts component from one of two competing suppliers. Delph is going to base its decision, in part, on the supply chain performance of the two suppliers. The company has obtained the following data for average raw materials, work-in-process, and finished goods inventory value, as well as cost of goods sold for the suppliers. Supplier 2 $14,850,000 850,000 570,000 200,000 Supplier 1 Cost of goods sold Raw materials Work-in-process Finished goods $8,500,000 265,000 64,500 31,500 Each company operates 52 weeks per year Determine the number of inventory turns and the weeks of supply for Delph Manufacturing Company. (Round answers to 1 decimal places, e.g. 52.7. Use 52 weeks for calculation.) Supplier 1 Supplier 2 Number of inventory turns Weeks of supply Determine which supplier has the best supply chain performance according to inventory turns and weeks of supply Inventory turns Weeks of supply Best supply chain performance Supplier2 Click if you would like to Show Work for this qu Supplier 1
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