The U.S. Airfilter company has hired you as a supply chain consultant. The company makes air...

  

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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: Sales (total quarter): United states Canada Europe Cost of goods sold (total quarter) Raw materials at the Louisville plant (end-of-quarter) Work-in-process and finished goods at the Louisville plant (end-of-quarter) Distribution center inventory (end-of-quarter): United states Canada Europe QUARTER 1 (JANUARY THROUGH MARCH) 438 154 49 494 84 156 56 16 7 QUARTER 3 (JULY THROUGH JUNE) SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 2 (APRIL THROUGH 388 142 34 435 53 118 38 13 6 552 90 23 517 81 145 46 19 9 QUARTER 4 (OCTOBER THROUGH DECEMBER) a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) 438 95 21 433 83 315 55 21 7 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or reduce sales or both O Reduce the amount of inventory or increase sales or both O Increase the amount of inventory or increase sales or both c. The company reported that it used $500M 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.) 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: Sales (total quarter): United states Canada Europe Cost of goods sold (total quarter) Raw materials at the Louisville plant (end-of-quarter) Work-in-process and finished goods at the Louisville plant (end-of-quarter) Distribution center inventory (end-of-quarter): United states Canada Europe QUARTER 1 (JANUARY THROUGH MARCH) 438 154 49 494 84 156 56 16 7 QUARTER 3 (JULY THROUGH JUNE) SEPTEMBER) All amounts in millions of U.S. dollars QUARTER 2 (APRIL THROUGH 388 142 34 435 53 118 38 13 6 552 90 23 517 81 145 46 19 9 QUARTER 4 (OCTOBER THROUGH DECEMBER) a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) 438 95 21 433 83 315 55 21 7 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or reduce sales or both O Reduce the amount of inventory or increase sales or both O Increase the amount of inventory or increase sales or both c. The company reported that it used $500M 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.)

Answer rating: 100% (QA)

a To calculate the average inventory turnover for the firm we need to divide the cost of goods sold ... View the full answer