Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Dogs-R-Us and K-9, Inc. are two retail stores that cater to the needs of dog owners in the greater Charleston area. There is healthy competition between these two establishments. Both operate 52 weeks a year and both sell approximately the same type and dollar value of items. Table provides the cost of goods sold, the average inventory level, and unit value of each item sold in the two stores.
a. Compare the two retail stores in terms of average aggregate inventory value.
b. Compare the two retail stores in terms of weeks of supply.
c. Compare the two retail stores in terms of inventory turnover.

TABLE
INVENTORY DATA FOR DOGS-R-US AND K-9, INC. STORES
DOGS-R-US
K-9, INC.
Cost of Goods Sold
$560,000.00
$640,000.00
Category
Average Inventory in Units
Value per Unit
Average Inventory in Units
Value per Unit
Dog Beds
200
$55.00
140
$55.00
Dog Bones & Treats
1,200
$2.50
250
$2.50
Pet Feeders
50
$12.50
20
$12.50
Flea & Tick
350
$7.50
75
$7.50
Dog Kennels
10
$65.00
2
$65.00
Dog Pens
10
$220.00
3
$220.00
Patio Pet Doors
$120.00
2
$120.00
Dog Ramps
$150.00
$150.00
Pet Strollers
10
$40.00
2
$40.00
Pet Supplements
1,400
$4.50
150
$4.50
Dog Toys
250
$2.20
100
$2.20|
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Transcribed Image Text:TABLE INVENTORY DATA FOR DOGS-R-US AND K-9, INC. STORES DOGS-R-US K-9, INC. Cost of Goods Sold $560,000.00 $640,000.00 Category Average Inventory in Units Value per Unit Average Inventory in Units Value per Unit Dog Beds 200 $55.00 140 $55.00 Dog Bones & Treats 1,200 $2.50 250 $2.50 Pet Feeders 50 $12.50 20 $12.50 Flea & Tick 350 $7.50 75 $7.50 Dog Kennels 10 $65.00 2 $65.00 Dog Pens 10 $220.00 3 $220.00 Patio Pet Doors $120.00 2 $120.00 Dog Ramps $150.00 $150.00 Pet Strollers 10 $40.00 2 $40.00 Pet Supplements 1,400 $4.50 150 $4.50 Dog Toys 250 $2.20 100 $2.20|
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