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 THROUGH SEPTEMBER) QUARTER 4 (OCTOBER THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states 366 364 406 556 Canada 131 94 147 81 Europe 65 41 30 24 Cost of goods sold (total quarter) 354 315 372 424 Raw materials at the Louisville plant (end-of-quarter) 56 47 78 74 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 146 152 121 252 Distribution center inventory (end-of-quarter): United states 44 30 37 41 Canada 15 14 23 19 Europe 8 6 8 5 a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) b. If you were given the assignment to increase inventory turnover, what would you focus on? multiple choice Reduce the amount of inventory or increase sales or both Reduce the amount of inventory or reduce sales or both Increase the amount of inventory or increase sales or both c. The company reported that it used $500M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? (Round your answer to 2 decimal places.)

Name: The U.S. Airfilter company has hired you as a supply chain consultant.
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: 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.

Question

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 THROUGH SEPTEMBER)	QUARTER 4 (OCTOBER THROUGH DECEMBER)
	All amounts in millions of U.S. dollars
Sales (total quarter):
United states	366	364	406	556
Canada	131	94	147	81
Europe	65	41	30	24

Cost of goods sold (total quarter)	354	315	372	424

Raw materials at the Louisville plant (end-of-quarter)	56	47	78	74

Work-in-process and finished goods at the Louisville plant (end-of-quarter)	146	152	121	252

Distribution center inventory (end-of-quarter):
United states	44	30	37	41
Canada	15	14	23	19
Europe	8	6	8	5

a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.)

b. If you were given the assignment to increase inventory turnover, what would you focus on?

multiple choice

Reduce the amount of inventory or increase sales or both
Reduce the amount of inventory or reduce sales or both
Increase the amount of inventory or increase sales or both

c. The company reported that it used $500M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? (Round your answer to 2 decimal places.)