Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring
Question:
(a) Calculate the inventory turnover for GR.
(b) Calculate the weeks of supply. Assume 52 weeks per year.
(c) Calculate the days of supply. Assume that GR operates 5 days per week.
Step by Step Answer:
a Inventory turnover 30000002...View the full answer
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Management Leadership questions
-
The data below is motivated by a New Zealand Listener magazine article (Septem- ber 25 2021) about the the number of reported fire incidents related to lithium-ion batteries. Lithium-ion batteries...
-
A company that manufactures recreational pedal boats has approached Mike Cichanowski to ask if he would be interested in using Current Designs rotomold expertise and equipment to produce some of the...
-
A company that manufactures air-operated drain valve assemblies budgeted $74,000 per year to pay for plastic components over a 5-year period. If the company spent only $42,000 in year 1, what uniform...
-
Compare two versions of the two-period depletable resource model that differ only in the treatment of marginal extraction cost. Assume that in the second version the constant marginal extraction cost...
-
How could source reduction efforts reduce the volume of waste that arises from abandoned automobiles?
-
Howard Corporation issued a 20-year mortgage note payable on January 1, 2014. At December 31, 2014, the unpaid principal balance will be reported as: (a) a current liability. (b) a long-term...
-
Compensation strategy includes how competitive the organization wants to be, the number of different compensation systems the organization wants to have, the mix of various reward and benefit...
-
Brokia Electronics manufactures three cell phone models, which differ only in the components included: Basic, Photo, and UrLife. Production takes place in two departments, Assembly and Special...
-
Coronado Towing Company purchased a tow truck for $160,080 on January 1, 2020. It was originally depreciated on a straight-line basis over 10 years with an assumed salvage value of $33,120. On...
-
Sun Valley Rides is a wholesaler of motorcycle supplies. An aging of the companys accounts receivable on December 31, 20Y3, and a historical analysis of the percentage of uncollectible accounts in...
-
Elyssas Elegant Eveningwear (EEE) needs to ship finished goods from its manufacturing facility to its distribution warehouse. Annual demand for EEE is 2400 gowns. EEE can ship the gowns via regular...
-
The Federal Reserve Board has just increased the interest rate. FFF in Problem 6 now has to pay 12 percent for its capital. Calculate the impact on total annual holding costs for FFF.
-
Discuss the changing role of account representatives in advertising agencies. Discuss how the role of account representative is changing and the developments that underlie these changes. Do you think...
-
why is a sense of direction and ethical values important for a learning / coaching organization.
-
The QBS process does not require prospective offerors to provide prices in their proposal. How does the owner determine the project price if it s not in the offeror s proposals? Do think the process...
-
A retail outlet sells a seasonal product for $10 per unit. The cost of the product is 58 per unit. All units not sold during the regular season are sold for half the retail price in an end-of-season...
-
At what level does selection act when it drives cancer?
-
Explain all types of financial Risk nd non-financial risk? Discuss pure risk, speculative risk, financial risk and operational risk in insurances. Discuss non-financial risk.
-
What is a common use for zinc? a) Galvanization of steel b) Lightweight aircraft parts c) Paint pigments d) Production of magnets
-
Complete problem P10-21 using ASPE. Data from P10-21 Original cost ................................................................. $7,000,000 Accumulated depreciation...
-
Refer to the compressor curves given in Figure 21. 11. Figure 21.11 a. At a flowrate of \(125 \mathrm{Mg} / \mathrm{h}\), what is the exit pressure from the compressor operating at 3500 rpm if the...
-
How did lean production evolve into a system of continuous improvement?
-
Why are flexible resources essential to lean production?
-
Why are flexible resources essential to lean production?
-
Gas from a petroleum distillation column has its concentration of H2S reduced from 0.03 kmol H2S per kmol inert hydrocarbon gas to 1% of this value by scrubbing with triethanolamine water mixture in...
-
Maxwell is trying to motivate his employees using expectancy theory. He decides that he is going to directly tie rewards to performance by letting employees know that for every customer service...
-
How technology advancements have benefited and harmed revenue streams for banks? Explain briefly
Study smarter with the SolutionInn App