Problem $16-17($Algo$)$

U$.$S$.$ Airfilter 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:

All amounts in millions of U$.$S$.$ dollars

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & $\backslash$begin$\{$tabular$\}\{$l$\}$

QUARTER $1\backslash \backslash$

$($JANUARY THROUGH MARCH$)$

$\backslash$end$\{$tabular$\}$ & $\backslash$begin$\{$tabular$\}\{$l$\}$

QUARTER $2($APRIL $\backslash \backslash$

THROUGH JUNE$)$

$\backslash$end$\{$tabular$\}$ & QUARTER $3($JULY THROUGH SEPTEMBER$)$ & QUARTER $4($OCTOBER THROUGH DECEMBER$)\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Sales $($total quarter$)$:$\}\backslash \backslash$

$\backslash$hline United States & $456$ & $402$ & $476$ & $512\backslash \backslash$

$\backslash$hline Canada & $130$ & $149$ & $121$ & $165\backslash \backslash$

$\backslash$hline Europe & $32$ & $40$ & $24$ & $16\backslash \backslash$

$\backslash$hline Cost of goods sold $($total quarter$)$ & $377$ & $362$ & $384$ & $431\backslash \backslash$

$\backslash$hline Raw materials at the Louisville plant $($end$-$of$-$quarter$)$ & $83$ & $41$ & $62$ & $86\backslash \backslash$

$\backslash$hline Work$-$in$-$process and finished goods at the Louisville plant $($end$-$of$-$quarter$)$ & $197$ & $141$ & $140$ & $226\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{5\}\{|$l$|\}\{$Distribution center inventory $($end$-$ofquarter$)$:$\}\backslash \backslash$

$\backslash$hline United States & $67$ & $51$ & $30$ & $40\backslash \backslash$

$\backslash$hline Canada & $16$ & $14$ & $17$ & $18\backslash \backslash$

$\backslash$hline Europe & $7$ & $6$ & $9$ & $5\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

a$.$ What is the average inventory turnover for the firm?

Note: Round your answer to $3$ decimal places.

Answer is complete but not entirely correct.

Average inventory turnover

$5\mathrm{.}101$ b$.$ If you were given the assignment to increase inventory turnover, what would you focus on$?$

Increase the amount of inventory or increase sales or both.

Reduce the amount of inventory or increase sales or both.

Reduce the amount of inventory or reduce sales or both.

c$.$ The company reported that it used $\backslash (\backslash$$ $500\backslash$mathrm$\{$M$\}\backslash )$ worth of raw material during the year. On average, how many weeks of supply of raw material are on$-$hand at the factory?

Note: Round your answer to $2$ decimal places.

Answer is complete but not entirely correct.

Weeks of raw material supply