Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales

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Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales (at cost) of £3 million. During the year, the inventory of decorative items turned over seven times. For the next year, Busy Bee plans to increase annual sales (at cost) by 30 percent.

a. What is the increase in the average aggregate inventory value required if Busy Bee maintains the same inventory turnover during the next year?

b. What change in inventory turns must Busy Bee achieve if, through better supply chain management, it wants to support next year's sales with no increase in the average aggregate inventory value?

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Related Book For  answer-question

Operations Management Processes And Supply Chains

ISBN: 9781292409863

13th Global Edition

Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman

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