Question
U.S. Airfilter has hired you as a supply chain consultant. The company makes air filters for heating and air conditioning. The filters are being made
U.S. Airfilter has hired you as a supply chain consultant.
The company makes air filters for heating and air conditioning.
The filters are being made at a factory in Louisville, Kentucky, United States,
It is distributed to retailers through 100 wholesalers in the United States, Canada, and Europe. The following is data related to the inventory value on the company's supply chain.
(in millions of dollars)
Q1 | Q2 | Q3 | Q4 | |
Sales volume: | ||||
US | 300 | 350 | 405 | 375 |
Canada | 75 | 60 | 75 | 70 |
Europe | 30 | 33 | 20 | 15 |
Cost of goods sold: | 280 | 295 | 340 | 350 |
Raw Materials | 50 | 40 | 55 | 60 |
Work in process & finished goods inventory | 100 | 105 | 120 | 150 |
Distribution center inventory : | ||||
US | 25 | 27 | 23 | 30 |
Canada | 10 | 11 | 15 | 16 |
Europe | 5 | 4 | 5 | 5 |
a. What is the average inventory turnover for this company?
b. What should I focus on to increase inventory turnover? What's the matter?
c. The company reportedly used $500 million worth of raw materials for a year.
What is the number of weeks of stock supply for raw materials in the factory?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started