Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two finished goods. Table 12.3 shows last year’s average inventory levels for these items, along with their unit values. a. What is the average aggregate inventory value? b. How many weeks of supply does the firm have? c. What was the inventory turnover last year?
Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two finished goods. Table 12.3 shows last year’s average inventory levels for these items, along with their unit values. a. What is the average aggregate inventory value? b. How many weeks of supply does the firm have? c. What was the inventory turnover last year?
Contemporary Marketing
18th Edition
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Louis E. Boone, David L. Kurtz
Chapter15: Distribution Channels And Supply Chain Management
Section15.4: Components Of The Supply Chain
Problem 1LO
Related questions
Question
Sapphire Aerospace operates 52 weeks per year, and its cost
of goods sold last year was $6,500,000. The firm carries eight
items in inventory: four raw materials, two work-in-process
items, and two finished goods. Table 12.3 shows last year’s
average inventory levels for these items, along with their unit
values.
a. What is the average aggregate inventory value?
b. How many weeks of supply does the firm have?
c. What was the inventory turnover last year?
![TABLE 12.3 SAPPHIRE AEROSPACE INVENTORY ITEMS
Category
Part Number Average Inventory Units Value per Unit
Raw materials
RM-1
20,000
$1
RM-2
5,000
RM-3
3,000
RM-4
1,000
8
Work-in-process
WIP-1
6,000
10
WIP-2
8,000
12
Finished goods
FG-1
1,000
65
FG-2
500
88](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa3f9cf34-5815-4787-b353-5764c9f7e599%2Fae10fbf0-218e-4875-a624-69324e286e5f%2Fzqy3tz_processed.png&w=3840&q=75)
Transcribed Image Text:TABLE 12.3 SAPPHIRE AEROSPACE INVENTORY ITEMS
Category
Part Number Average Inventory Units Value per Unit
Raw materials
RM-1
20,000
$1
RM-2
5,000
RM-3
3,000
RM-4
1,000
8
Work-in-process
WIP-1
6,000
10
WIP-2
8,000
12
Finished goods
FG-1
1,000
65
FG-2
500
88
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 5 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Contemporary Marketing](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
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](https://www.bartleby.com/isbn_cover_images/9780357033777/9780357033777_smallCoverImage.jpg)
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
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