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: QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) QUARTER 3 (JULY QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7
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: QUARTER 1 (JANUARY THROUGH MARCH) QUARTER 2 (APRIL THROUGH JUNE) QUARTER 3 (JULY QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7
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 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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A. What is the average invention turnover for the firm?
B if you were given the assignment to increase inventory turnover, what would you focus on?
Reduce inventory or sale or both
Increase inventory or sale or both
Reduce inventory or sale or both
C. The company reported that it used $500m worth of raw material during the yeR. On average, how many weeks of supply of raw material are on hand at the factory?
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