10. 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 582 476 700 440 Canada 112 71 97 101 Europe 74 43 42 18 Cost of goods sold (total quarter) 570 429 633 381 Raw materials at the Louisville plant (end-of-quarter) 96 50 79 76 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 191 176 148 191 Distribution center inventory (end-of-quarter): United states 59 54 50 60 Canada 17 13 25 20 Europe 6 6 13 6 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 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.)

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...

See similar textbooks

Related questions

Question

10.

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	582	476	700	440
Canada	112	71	97	101
Europe	74	43	42	18

Cost of goods sold (total quarter)	570	429	633	381

Raw materials at the Louisville plant (end-of-quarter)	96	50	79	76

Work-in-process and finished goods at the Louisville plant (end-of-quarter)	191	176	148	191

Distribution center inventory (end-of-quarter):
United states	59	54	50	60
Canada	17	13	25	20
Europe	6	6	13	6

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

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.)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here