Homework Help is Here – Start Your Trial Now!
Business
Operations Management
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: 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 a. What is the average inventory turnover for the firm? Note: Round your answer to 3 decimal places. Average inventory turnover QUARTER 1 (JANUARY THROUGH MARCH) Weeks of supply 356 130 42 338 93 194 38 14 6 QUARTER 2 (APRIL THROUGH 532 127 34 445 JUNE) All amounts in millions of U.S. dollars 49 175 46 20 QUARTER 3 (JULY THROUGH SEPTEMBER) 7 552 116 49 465 79 127 QUARTER 4 (OCTOBER THROUGH DECEMBER) 30 21 11 436 151 24 398 89 176 40 19 6 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or increase sales or both O Reduce the amount of inventory or reduce sales or both O Increase the amount of inventory or increase sales or both c. The company reported that it used $531.0M 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.

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: 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 a. What is the average inventory turnover for the firm? Note: Round your answer to 3 decimal places. Average inventory turnover QUARTER 1 (JANUARY THROUGH MARCH) Weeks of supply 356 130 42 338 93 194 38 14 6 QUARTER 2 (APRIL THROUGH 532 127 34 445 JUNE) All amounts in millions of U.S. dollars 49 175 46 20 QUARTER 3 (JULY THROUGH SEPTEMBER) 7 552 116 49 465 79 127 QUARTER 4 (OCTOBER THROUGH DECEMBER) 30 21 11 436 151 24 398 89 176 40 19 6 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or increase sales or both O Reduce the amount of inventory or reduce sales or both O Increase the amount of inventory or increase sales or both c. The company reported that it used $531.0M 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.

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 3.8A
See similar textbooks
icon
Related questions
Question

Q25 please please help me

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: 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 a. What is the average inventory turnover for the firm? Note: Round your answer to 3 decimal places. Average inventory turnover QUARTER 1 (JANUARY THROUGH MARCH) 356 130 42 338 Weeks of supply 93 194 38 00 + 14 6 QUARTER 2 (APRIL THROUGH 532 127 34 445 JUNE) All amounts in millions of U.S. dollars 49 175 QUARTER 3 (JULY THROUGH SEPTEMBER) 46 20 7 552 116 49 465 79 127 30 21 11 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or increase sales or both O Reduce the amount of inventory or reduce sales or both O Increase the amount of inventory or increase sales or both QUARTER 4 (OCTOBER THROUGH DECEMBER) 436 151 24 398 89 176 40 19 6 used $531.0M worth of raw material during the year. On average, how many weeks of supply of raw c. The company reported that material are on-hand at the factory? Note: Round your answer to 2 decimal places.
Transcribed Image Text: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: 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 a. What is the average inventory turnover for the firm? Note: Round your answer to 3 decimal places. Average inventory turnover QUARTER 1 (JANUARY THROUGH MARCH) 356 130 42 338 Weeks of supply 93 194 38 00 + 14 6 QUARTER 2 (APRIL THROUGH 532 127 34 445 JUNE) All amounts in millions of U.S. dollars 49 175 QUARTER 3 (JULY THROUGH SEPTEMBER) 46 20 7 552 116 49 465 79 127 30 21 11 b. If you were given the assignment to increase inventory turnover, what would you focus on? O Reduce the amount of inventory or increase sales or both O Reduce the amount of inventory or reduce sales or both O Increase the amount of inventory or increase sales or both QUARTER 4 (OCTOBER THROUGH DECEMBER) 436 151 24 398 89 176 40 19 6 used $531.0M worth of raw material during the year. On average, how many weeks of supply of raw c. The company reported that material are on-hand at the factory? Note: Round your answer to 2 decimal places.
Expert Solution
Calculation methods:

Find the Calculation methods below:

Average Inventory Turnover = Annual cost of Goods SoldAggregate Inventory ValueAnnual cost of Goods Sold = Total of 4 quarter's amountsAggregate Inventory Value = Raw materials cost + WIP and Finished goods cost + Distribution center inventory costWeeks of Supply = Average of Raw material costTotal worth x 52 Weeks

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS