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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 filters

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 764 770 786 868
Canada 89 99 89 91
Europe 76 41 36 23
Cost of goods sold (total quarter) 816 801 806 867
Raw materials at the Louisville plant (end-of-quarter) 59 66 69 86
Work-in-process and finished goods at the Louisville plant (end-of-quarter) 138 186 136 195
Distribution center inventory (end-of-quarter):
United states 35 28 43 55
Canada 16 13 17 24
Europe 7 5 15 7

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 increase sales or both

Increase 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.)

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