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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 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 4 (ОСТОВER THROUGH QUARTER 3 (JULY THROUGH SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) DECEMBER) Sales (total quarter): United states 375 70 15 300 350 60 405 75 Canada 75 Europe 30 33 20 Cost of goods sold (total quarter) 280 295 340 350 Raw materials at the Louisville plant (end-of-quarter) 50 40 55 60 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 120 150 Distribution center inventory (end-of-quarter): United states 25 27 23 30 Canada 10 11 15 16 5 Europe 5 5 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? O Increase the amount of inventory or increase sales or both O Reduce the amount of inventory or increase sales or both O 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.) Weeks of raw material supply

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 4 (ОСТОВER THROUGH QUARTER 3 (JULY THROUGH SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) DECEMBER) Sales (total quarter): United states 375 70 15 300 350 60 405 75 Canada 75 Europe 30 33 20 Cost of goods sold (total quarter) 280 295 340 350 Raw materials at the Louisville plant (end-of-quarter) 50 40 55 60 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 120 150 Distribution center inventory (end-of-quarter): United states 25 27 23 30 Canada 10 11 15 16 5 Europe 5 5 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? O Increase the amount of inventory or increase sales or both O Reduce the amount of inventory or increase sales or both O 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.) Weeks of raw material supply

Purchasing and Supply Chain Management
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...
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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 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 4 (ОСТОВER THROUGH QUARTER 3 (JULY THROUGH SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) DECEMBER) Sales (total quarter): United states 375 70 15 300 350 60 405 75 Canada 75 Europe 30 33 20 Cost of goods sold (total quarter) 280 295 340 350 Raw materials at the Louisville plant (end-of-quarter) 50 40 55 60 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 120 150 Distribution center inventory (end-of-quarter): United states 25 27 23 30 Canada 10 11 15 16 5 Europe 5 5 a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) Average inventory turnover
Transcribed Image Text: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 4 (ОСТОВER THROUGH QUARTER 3 (JULY THROUGH SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) DECEMBER) Sales (total quarter): United states 375 70 15 300 350 60 405 75 Canada 75 Europe 30 33 20 Cost of goods sold (total quarter) 280 295 340 350 Raw materials at the Louisville plant (end-of-quarter) 50 40 55 60 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 120 150 Distribution center inventory (end-of-quarter): United states 25 27 23 30 Canada 10 11 15 16 5 Europe 5 5 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? O Increase the amount of inventory or increase sales or both O Reduce the amount of inventory or increase sales or both O 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.) Weeks of raw material supply
Transcribed Image Text:b. If you were given the assignment to increase inventory turnover, what would you focus on? O Increase the amount of inventory or increase sales or both O Reduce the amount of inventory or increase sales or both O 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.) Weeks of raw material supply
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