Question

EBI Solar uses a high-tech process to turn silicon wafers into tiny solar panels. These efficient and inexpensive panels are used to power low-energy hand-held electronic devices. Last year, EBI Solar turned their inventory 4.5 times and had a cost of goods sold of $2.5 million.
Assuming 52 business weeks per year:
a. Express last year’s average inventory in weeks of supply.
b. After several supply chain improvement initiatives, inventory investment has dropped across all inventory categories. While EBI’s cost of goods sold is not expected to change from last year’s level, the value of raw materials has dropped to $100,500; work-in-process to $25,800; and finished goods to $16,200. Assuming 52 business weeks per year express EBI’s current total inventory level in weeks of supply and inventory turns.



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  • CreatedNovember 07, 2013
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