Question: Solar Tech Innovations employs an advanced method to transform silicon wafers into compact solar panels. These cost - effective and efficient panels are particularly designed

Solar Tech Innovations employs an advanced method to transform silicon wafers into compact solar panels. These cost-effective and efficient panels are particularly designed for low-energy, portable electronic devices. In the previous year, Solar Tech Innovations had an inventory turnover rate of 4.5 times with a cost of goods sold totaling $2.5 million. Given a standard business year of 52 weeks:
a. Calculate the average inventory from last year in weeks of supply.
(given that Inventory turnover Annual sales at cost)/(Average aggregate inventory value); annual sales at cost = cost of goods sold; Weekly sales = Cost of goods sold ?52; Weeks of supply = Average aggregate inventory value / weekly sales)(Note: see chapter 12)
b. Following a series of enhancements in the supply chain, there has been a reduction in the inventory investment across all categories. While the cost of goods sold is not expected to change from last year's level, the value of raw materials has dropped to $100,500; work-in-process to $25,800; and finished goods to $16,200. Assuming 52 business weeks per year, calculate the company's current total inventory level in weeks of supply and inventory turns. (given that: Average aggregate inventory value = raw material + work-in-process + finished goods)
 Solar Tech Innovations employs an advanced method to transform silicon wafers

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