Dogs-R-Us and K-9 Inc. are two retail stores that cater to the needs of dog owners in
Question:
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 weeks a year and both sell approximately the same type and dollar value of items. Table 1 provides the cost of goods sold, the average inventory level, and unit value of each item sold in the two stores.
| Dogs-R-Us | | K-9 Inc. | |
Cost of Goods Sold | $590,000.00 | | $680,000.00 | |
Category | Average Inventory in Units | Value per Unit | Average Inventory in Units | Value per Unit |
Dog Beds | 210 | $55.00 | 150 | $55.00 |
Dog Bones & Treats | 1,100 | $2.50 | 260 | $2.50 |
Pet Feeders | 60 | $12.00 | 25 | $12.50 |
Flea & Tick | 360 | $7.50 | 70 | $7.20 |
Dog Kennels | 10 | $65.00 | 2 | $60.00 |
Dog Pens | 10 | $220.00 | 3 | $220.00 |
Patio Pet Doors | 7 | $125.00 | 4 | $120.00 |
Dog Ramps | 3 | $150.00 | 3 | $155.00 |
Pet Strollers | 7 | $42.50 | 3 | $42.50 |
Pet Supplements | 1,350 | $4.70 | 160 | $4.50 |
Dog Toys | 240 | $2.20 | 90 | $2.30 |
a. Compare the two retail stores in terms of average aggregate inventory value.
The average aggregate inventory value for Dogs-R-Us is $_____
The average aggregate inventory value for K-9 Inc is $_____
b. Compare the two retail stores in terms of weeks of supply.
c. Compare the two retail stores in terms of inventory turnover.
Operations Management Processes and Supply Chains
ISBN: 978-0132807395
10th edition
Authors: Lee J. Krajewski, Larry P. Ritzman, Manoj K. Malhotra