A large catalog retailer of fashion apparel reported $100,000,000 in revenues over the last year. On average,
Question:
a. How many times each year does the retailer turn its inventory?
b. The company uses a 40 percent per year cost of inventory. That is, for the hypothetical case that one item of $100 COGS would sit exactly one year in inventory, the company charges itself a $40 inventory cost. What is the inventory cost for a $30 (COGS) item? You may assume that inventory turns are independent of the price.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Matching Supply with Demand An Introduction to Operations Management
ISBN: 978-0073525204
3rd edition
Authors: Gerard Cachon, Christian Terwiesch
Question Posted: