Problem 3) (12 points) 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: Quarter 1 (January through Quarter 2 (April March) Quarter 3 Quarter 4 through June) (July through (October through September) December) Sales (total quarter): United States 425 450 475 425 Canada 75 60 85 70 Europe 30 33 25 15 Cost of goods 325 350 385 375 sold (total quarter) Raw materials at the Louisville 00 60 40 40 65 60 plant (end-of-quarter) Work-in-process and finished goods at the 100 110 120 130 Louisville plant (end-of-quarter) Distribution center inventory (end-of-quarter): United States Canada Europe 30 30 27 30 15 11 16 5 4 5 All amounts in millions of U.S. dollars. 28 15 a) What is the average inventory turnover (quarterly and yearly) for the firm? (10 points) b) If you were given the assignment to increase inventory turnover, what would you focus on? Why? (2 points)