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The following table shows financial data (year 2006) for Dirt Cheap Wholesale and Kwiki-Mart, two US retailers. Both companies have an average annual holding cost
The following table shows financial data (year 2006) for Dirt Cheap Wholesale and Kwiki-Mart, two US retailers. Both companies have an average annual holding cost of 20%.
Dirt Cheap Wholesale | Kwiki-Mart Stores | |
Inventories ($ million) | 4754 | 40894 |
Sales (net $ million) | 59217 | 397206 |
COGS ($ million) | 52762 | 326606 |
How many days (numbers are rounded off at two digits after decimal), on average, does a product stay in Dirt Cheaps inventory before it is sold? Assume that stores operate 365 days a year. How much does it cost (numbers are rounded off at two digits after decimal) Kwiki-Mart to hold an item valued at $50?
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