Problem $16-17($Algo$)$

The U$.$S$.$ Airfilter company has hired you as a supply chain consultant. The company makes air filters for residential heating and air$-$conditioning systems. These filters are made in a single plant located in Louisville, Kentucky, in the United States. They are distributed to retailers through wholesale centers in $100$ locations in the United States, Canada, and Europe. You have collected the following data relating to the value of inventory in the U$.$S$.$ Airfilter supply chain:

$$

$$QUARTER $1$

$($JANUARY

THROUGH

MARCH$)$QUARTER $2$

$($APRIL THROUGH

JUNE$)$QUARTER $3$

$($JULY

THROUGH

SEPTEMBER$)$QUARTER $4$

$($OCTOBER

THROUGH

DECEMBER$)$All amounts in millions of U$.$S$.$ dollarsSales $($total quarter$)$:$$United states$432524648384$Canada$143117124161$Europe$52374721$Cost of goods sold $($total quarter$)345374501318$Raw materials at the Louisville plant

$($end$-$of$-$quarter$)83456785$Work$-$in$-$process and finished goods at

$$the$$Louisville plant $($end$-$of$-$quarter$)115128149144$Distribution center inventory

$($end$-$of$-$quarter$)$:$$United states$61404435$Canada$15152425$Europe$85106$

a$.$ What is the average inventory turnover for the firm? $($Round your answer to $3$ decimal places.$)$

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b$.$ If you were given the assignment to increase inventory turnover, what would you focus on$?$

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multiple choice

Reduce the amount of inventory or reduce sales or both

Reduce the amount of inventory or increase sales or both

Increase the amount of inventory or increase sales or both

c$.$ The company reported that it used $$500$M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? $($Round your answer to $2$ decimal places.$)$

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