Question
Wal Mart, Kroger, Amazon, and Costco are all companies that sell products. Find their annual reports or other financial site that contains the needed financial
Wal Mart, Kroger, Amazon, and Costco are all companies that sell products. Find their annual reports or other financial site that contains the needed financial information. Part A: Using Excel, develop a spreadsheet detailing their; Company Name, Sales $, Cost of Goods Sold $, Inventory Level $, Inventory Turnover Ratio, and Inventory Holding $ (use 25% of their inventory level $). The Inventory holding cost and Turnover Ratio calculations must be performed in Excel using a formula. Include the source of your information for each company Part A is worth 16 points Part B: Compare the Inventory Turnover Ratio of Amazon and Wal Mart. Calculate how much savings could be obtained if the lesser performing company could obtain the same Turnover ratio as the better performing company. Hint: Calculate how much the other company would have to reduce inventory to match the Turnover Ratio of Amazon if it has the better turnover or WalMart if it has the better turnover x the value of inventory. Part B is worth 4 points Reference the video in Table of Contnets, Excel Tutorials labeled Days Inventory V-lookup Excel In the video Dr Cliff uses Days on Hand to make this calculation while this assignment uses Inventory Turnover. You will need to know the relationship Days on Hand and Inventory Turnover have to each other in order to calculate. The other alternative is to calculate Days on Hand in addition to Inventory Turnover and follow the methodology in the video. Chapter 11 pages 460 to 463 contains information on Inventory also. Format your spreadsheet to look professional. Use data from 2019. If a company uses a fiscal year rather than a calendar year to report financials use the information that best reflects 2019. BE SURE TO INCLUDE ALL 000'S IN YOUR NUMBERS. OFTEN THE ANNUAL REPORT WILL LIST VALUES IN MILLIONS. The point of this assignment is to see how much money is being held in Inventory. Supply Chain Management is a hot field with many well paying jobs, because the investment from the companies involved is so great and the opportunities to reduce cost are high.
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