Determining the Effects of Inventory Management Changes on Inventory Turnover Ratio Indicate the most likely effect of

Question:

Determining the Effects of Inventory Management Changes on
Indicate the most likely effect of the following changes in inventory management on the (use + for increase, − for decrease, and NE for no effect).
___ a. Have parts inventory delivered daily by suppliers instead of weekly.
___ b. Extend payments for inventory purchases from 15 days to 30 days.
___ c. Shorten production process from 10 days to 8 days.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...