Question: Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16,830 Cost

Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover.

Arrow Distributing Corp. Net Revenue $16,830 Cost of sales $14,050 Inventory $940 Total assets $8,380

a) What is its weeks of supply?

b) What percentage of Arrow's assets are committed to inventory?

c) What is Arrow's inventory turnover?

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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