Dara Jones, operations manager of Arrow Distributing Corp. (see Table 11.9), likes to track inventory by using weeks of supply as well as by inventory turnover.
a) What is Arrow’s weeks of supply?
b) What percentage of Arrow’s assets are committed to inventory?
c) What is Arrow’s inventory turnover?
d) Is Arrow’s supply chain performance, as measured by these inventory metrics, better than that of Baker Mfg. in Problem 11.5?

Data from problem 11.5

Jenna Baker, CEO of Baker Mfg. Inc., wishes to compare her company’s inventory turnover (see Table 11.9) to that of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.

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TABLE 11.9 ARROW DISTRIBUTING CORP. Net revenue Cost of sales Average inventory Total assets BAKER MFG. INC. Net revenue Cost of sales Average inventory Total assets $16,500 $13,500 $ 1,000 $ 8,600 $27,500 $21,500 $1,250 $16,600