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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 US Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and airconditioning 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 locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the US Airfilter supply chain:
QUARTER
JANUARY
THROUGH
MARCH QUARTER
APRIL THROUGH
JUNE QUARTER
JULY
THROUGH
SEPTEMBER QUARTER
OCTOBER
THROUGH
DECEMBER
All amounts in millions of US dollars
Sales total quarter:
United states
Canada
Europe
Cost of goods sold total quarter
Raw materials at the Louisville plant
endofquarter
Workinprocess and finished goods at
the Louisville plant endofquarter
Distribution center inventory
endofquarter:
United states
Canada
Europe
a What is the average inventory turnover for the firm? Round your answer to 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 $M 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 decimal places.
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