Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $48 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year?b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year’s sales with no increase in the average aggregate inventory value?
Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $48 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year?b. What change in inventory turns must Cyberphone achieve if, through better supply chain management, it wants to support next year’s sales with no increase in the average aggregate inventory value?
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
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Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Cyberphone, a manufacturer of cell phone accessories, ended the current year with annual sales (at cost) of $48 million. During the year, the inventory of accessories turned over six times. For the next year, Cyberphone plans to increase annual sales (at cost) by 25 percent.
a. What is the increase in the average aggregate inventory value required if Cyberphone maintains the same inventory turnover during the next year?
b. What change in inventory turns must Cyberphone achieve if, through better
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