U. S. Airfilter 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:

a. What is the average inventory turnover for the firm?
b. If you were given the assignment to increase inventory turnover, what would you focus on? Why?
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 thefactory?

  • CreatedApril 09, 2014
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