Question: The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The following table shows the average value (in $ millions) of
The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The following table shows the average value (in $ millions) of component parts, work-in-process, and finished computers at the DC for the past four years.
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a. Determine the number of inventory turns and the days of supply for each year.
b. As the company has grown, does it appear that the companys supply chain performance has improved? Explain your answer.
c. If the company wants to improve its supply chain performance, what items should it focus on?Why?
Year Component parts$20.5 27.83 30.8 Work-in-process Finished computers Cost of goods sold 226.0 345.0 5170 680.0 37.3 9.5 10.1 L2 3.6 6.7 12 7.2 7.1 8.6
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a Year 1 2 3 4 Inventory turns 80 83 111 120 Days of supply 457 441 328 305 b Th... View full answer
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