Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000.
Question:
a. What is the average aggregate inventory value?
b. How many weeks of supply do the firm have?
c. What was the inventory turnover last year?
Category Part Number RM-1 RM-2 RM-3 RM-4 Average Inventory Units 20,000 5,000 3,000 1,000 6,000 8,000 1,000 500 Value per Unit Raw materials $1 10 12 65 Work-in-process WIP-1 WIP-2 FG-1 FG-2 Finished goods
Step by Step Answer:
Sapphire Aerospace a Average Part Number Inventory units Value unit Total Value RM1 20000 100 20...View the full answer
Operations Management Processes and Supply Chains
ISBN: 978-0133872132
11th edition
Authors: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Management Leadership questions
-
Sterling, inc. operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory four raw materials, two work-in- process items, and two...
-
The following situations represent errors and frauds that could occur in financial statements. Required: State how the ratio in question would compare (higher, equal, or lower) to what the ratio...
-
The following situations represent errors and irregularities that can occur in financial statements. Required: Your requirement is to state how the ratio in question would compare (greater, equal, or...
-
Khairul has been working with Tun Hamid Energy Bhd since 1 February 2009 as a Human Resource Executive. Beginning 1 January 2014, he was promoted as Human Resource Manager. Details of his...
-
Calculate the annual percentage rate of forgoing the cash discount under each of the following credit terms: a. 2/10, net 60 b. 2/10, net 30
-
Bobbys Bagels just landed a contract to open 100 new stores in shopping malls across the country. The new business should triple the companys profits. Prior to disclosing the new contract to the...
-
The composite aluminum 2014-T6 bar is made from two segments having diameters of \(7.5 \mathrm{~mm}\) and \(15 \mathrm{~mm}\). Determine the maximum height \(h\) from which the 10-kg collar should be...
-
A traffic light hangs from a pole as shown in Fig. 9-55. The uniform aluminum pole AB is 7.50 m long and has a mass of 12.0kg. The mass of the traffic light is 21.5 kg. Determine (a) The tension in...
-
S The four people below have the following investments. Invested Amount Interest Rate Jerry Elaine $ 11,800 12% 14,800 8 Compounding Quarterly Semiannually 21,800 7 17,800 9 Annually Annually George...
-
Pharmaceutical Industry. An equities analyst is studying the pharmaceutical in-dustr and would like your help in exploring and understanding the financial data collected by her fun. Iler main...
-
One product line at Spearman Fishing Industries has 10 turns per year and an annual sales volume (at cost) of $985,000. How much inventory is being held, on average?
-
Dogs-R-Us and K-9, Inc. are two retail stores that cater to the ^ needs of dog owners in the greater Charleston area. There is healthy competition between these two establishments. Both operate 52...
-
Sketch an example of the type of triangle described. Mark the triangle to indicate wha information is known. If no triangle can be drawn, write "not possible." acute isosceles
-
Is the sales tax a progressive or regressive? What are the policy actions that governments can take that change the vertical equity implications of the sales tax? Provide examples of the application...
-
Suppose an extended period of political upheaval leads individuals to believe that the economy is heading toward a long recession. As a result, people will likely become more willing to accept money...
-
Do you think the stock value is largely determined by the near future dividends, or the long term events? Does a one-time increase in dividend significantly increase the stock value?
-
Do barriers such as environmental standards work negatively for countries that are majorly dependent on exports and Imports?
-
Ginny Pigg is required to take a newly developed pre-employment test designed to predict her likely degree of job success. Statistical confirmation of the ability of this test to make such a...
-
Find the inverse function f 1 for the exponential function f(x) = 2 e x + 1 5.
-
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
-
The management of the just Like Home restaurant has asked you to analyze some of its processes. One of these processes is making a single-scoop ice cream cone. Cones can be ordered by a server (for...
-
The management of the just Like Home restaurant has asked you to analyze some of its processes. One of these processes is making a single-scoop ice cream cone. Cones can be ordered by a server (for...
-
The management of the just Like Home restaurant has asked you to analyze some of its processes. One of these processes is making a single-scoop ice cream cone. Cones can be ordered by a server (for...
-
A process manufacturer reports the following: Conversion Units Beginning work in process inventory 194,000 Percent Complete 85% Units started this period 420,000 Units completed and transferred out...
-
Crane Windows manufactures and sells custom storm windows for three-season porches. Crane also provides installation service for the windows. The installation process does not involve changes in the...
-
Outline two benefits of good group dynamics on a team's performance. Provide examples of three causes of poor group dynamics. Explain why a team would need a team performance plan.
Study smarter with the SolutionInn App