Dogs-R-Us and K-9 Inc. are two retail stores that cater to the needs of dog owners in the greater Charleston area. There is healthy competition
Dogs-R-Us and K-9 Inc. are two retail stores that cater to the needs of dog owners in the greater Charleston area. There is healthy competition between these two establishments. Both operate 52 weeks a year and both sell approximately the same type and dollar value of items. Table 1 provides the cost of goods sold, the average inventory level, and unit value of each item sold in the two stores.
| | Dogs-R-Us | | K-9 Inc. | |
| Cost of Goods Sold | $590,000.00 | | $680,000.00 | |
| Category | Average Inventory in Units | Value per Unit | Average Inventory in Units | Value per Unit |
| Dog Beds | 210 | $55.00 | 150 | $55.00 |
| Dog Bones & Treats | 1,100 | $2.50 | 260 | $2.50 |
| Pet Feeders | 60 | $12.00 | 25 | $12.50 |
| Flea & Tick | 360 | $7.50 | 70 | $7.20 |
| Dog Kennels | 10 | $65.00 | 2 | $60.00 |
| Dog Pens | 10 | $220.00 | 3 | $220.00 |
| Patio Pet Doors | 7 | $125.00 | 4 | $120.00 |
| Dog Ramps | 3 | $150.00 | 3 | $155.00 |
| Pet Strollers | 7 | $42.50 | 3 | $42.50 |
| Pet Supplements | 1,350 | $4.70 | 160 | $4.50 |
| Dog Toys | 240 | $2.20 | 90 | $2.30 |
a. Compare the two retail stores in terms of average aggregate inventory value.
The average aggregate inventory value for Dogs-R-Us is $_____
The average aggregate inventory value for K-9 Inc is $_____
b. Compare the two retail stores in terms of weeks of supply.
c. Compare the two retail stores in terms of inventory turnover.
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Operations Management Processes and Supply Chains
Authors: Lee J. Krajewski, Larry P. Ritzman, Manoj K. Malhotra
10th edition
978-013280747, 132807394, 9780132951814, 132807475, 132951819, 978-0132807395
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