If the annual cost of goods sold is $12,000,000 and the average inventory is $2,250,000, a. What

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If the annual cost of goods sold is $12,000,000 and the average inventory is $2,250,000,

a. What is the inventory turns ratio?

b. What would be the reduction in average inventory if, through better materials management, inventory turns were increased to 10 times per year?

c. If the cost of carrying inventory is 20% of the average inventory, what is the annual savings?

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Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

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Question Posted: Jul 01, 2019 08:41 AM

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If the annual cost of goods sold is $12,000,000 and the average inventory is $2,250,000, a. What

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a b Reduction in inventory 2500000 ...View the full answer

Introduction To Materials Management

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