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The U . S . Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air

The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air-conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in 100 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U.S. Airfilter supply chain:
QUARTER 1
(JANUARY
THROUGH
MARCH) QUARTER 2
(APRIL THROUGH
JUNE) QUARTER 3
(JULY
THROUGH
SEPTEMBER) QUARTER 4
(OCTOBER
THROUGH
DECEMBER)
All amounts in millions of U.S. dollars
Sales (total quarter):
United states 438388552438
Canada 1541429095
Europe 49342321
Cost of goods sold (total quarter)494435517433
Raw materials at the Louisville plant
(end-of-quarter)84538183
Work-in-process and finished goods at
the Louisville plant (end-of-quarter)156118145315
Distribution center inventory
(end-of-quarter):
United states 56384655
Canada 16131921
Europe 7697
a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.)
b. If you were given the assignment to increase inventory turnover, what would you focus on?
multiple choice
Reduce the amount of inventory or reduce sales or both
Reduce the amount of inventory or increase sales or both
Increase the amount of inventory or increase sales or both
c. The company reported that it used $500M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? (Round your answer to 2 decimal places.)

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