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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- conditioning systems. These
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 3 QUARTER 2 (APRIL THROUGH JUNE) (JULY QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 486 422 574 540 81 135 154 168 34 40 41 15 Cost of goods sold (total quarter) 433 431 560 529 Raw materials at the Louisville plant (end-of-quarter) 75 49 47 67 775 75 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 165 194 124 256 256 Distribution center inventory (end-of-quarter): United states Canada Europe 47 16 268 52 19 225 26 16 55 24 8 7 a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) a. what is the average inventory turnover for the firm: (Round your answer to 5 decimal places.) Answer is complete but not entirely correct. Average inventory turnover 1.648 X b. If you were given the assignment to increase inventory turnover, what would you focus on? Increase the amount of inventory or increase sales or both Reduce the amount of inventory or increase sales or both Reduce the amount of inventory or reduce 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.) Answer is complete but not entirely correct. Weeks of raw material supply 20.39 x
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