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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 352 484 502 766
Canada 129 72 101 117
Europe 73 40 24 17
Cost of goods sold (total quarter) 316 341 520 607
Raw materials at the Louisville plant (end-of-quarter) 54 51 81 64
Work-in-process and finished goods at the Louisville plant (end-of-quarter) 164 146 131 137
Distribution center inventory (end-of-quarter):
United states 51 28 46 36
Canada 16 15 15 24
Europe 7 4 10 8

a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.)

Average inventory turnover

b. If you were given the assignment to increase inventory turnover, what would you focus on?

Reduce the amount of inventory or increase sales or both
Reduce the amount of inventory or reduce 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.)

Weeks of raw material supply

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