Question: Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16 comma
Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover.
| Arrow Distributing Corp. | ||
| Net Revenue | $16 comma 800 | |
| Cost of sales | $12 comma 730 | |
| Inventory | $1 comma 100 | |
| Total assets | $8 comma 790 | |
a) What is its weeks of supply?
weeks (round your response to two decimal places).
b) What percentage of Arrow's assets are committed to inventory?
%
(enter your response as a percentage rounded to two decimal places).
c) What is Arrow's inventory turnover?
times per year (round your response to two decimal places).
d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is
the same
worse
better
.
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