Case Study: NutriFoods S$.$A$.$ NutriFoods S$.$A$.$ produces and distributes processed foods $($cereals$,$ instant soups, and energy bars$)$ with a focus on high quality and competitive prices. The company has a $2,000$ m$^2$ central warehouse on the outskirts of the city, which operates as the main distribution point for its customers throughout the country. The warehouse manages two types of products: $1.$ Finished products $($ready to be distributed$).2.$ Raw materials $($inputs such as grains, sugar, flavorings, and packaging$).$ Product rotation is critical, as many have a short shelf life $(30$ to $180$ days$).$ Currently, the warehouse faces space problems, inventory obsolescence, and shipping delays. $3.$ Inventory Turnover Estimation The company needs to monitor inventory turnover to optimize its working capital.

Question:

a$)$ Calculate the inventory turnover ratio for finished products, considering:

$$ Annual Cost of Sales: $$1,800,000.$

$$ Average Inventory: $$300,000.$

b$)$ How could you improve this indicator and what measures would you recommend?