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10-5. The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The follow- ing table shows the average value (in $ millions) of compo- nent parts, work-in-process, and finished computers at the DC for the past years. four Year 1 $20.5 Component parts Work-in-process Finished computers Cost of goods sold 27.8 30.8 37.3 4.2 6.7 7.1 9.5 3.6 7.2 8.6 10.1 226.0 345.0 517.0 680.0

10-5. The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The follow- ing table shows the average value (in $ millions) of compo- nent parts, work-in-process, and finished computers at the DC for the past years. four Year 1 $20.5 Component parts Work-in-process Finished computers Cost of goods sold 27.8 30.8 37.3 4.2 6.7 7.1 9.5 3.6 7.2 8.6 10.1 226.0 345.0 517.0 680.0

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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a. Determine the number of inventory turns and the days of supply for each year. b. As the company has grown, does it appear that the company's supply chain performance has improved? Explain your answer. c. If the company wants to improve its supply chain per- formance, what items should it focus on? Why?
Transcribed Image Text:a. Determine the number of inventory turns and the days of supply for each year. b. As the company has grown, does it appear that the company's supply chain performance has improved? Explain your answer. c. If the company wants to improve its supply chain per- formance, what items should it focus on? Why?
10-5. The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The follow- ing table shows the average value (in $ millions) of compo- nent parts, work-in-process, and finished computers at the DC for the past four years. Year 2 3 $20.5 Component parts Work-in-process Finished computers Cost of goods sold 27.8 30.8 37.3 4.2 6.7 7.1 9.5 3.6 7.2 8.6 10.1 226.0 345.0 517.0 680.0
Transcribed Image Text:10-5. The PM Computer Company makes build-to-order (BTO) computers at its distribution center year round. The follow- ing table shows the average value (in $ millions) of compo- nent parts, work-in-process, and finished computers at the DC for the past four years. Year 2 3 $20.5 Component parts Work-in-process Finished computers Cost of goods sold 27.8 30.8 37.3 4.2 6.7 7.1 9.5 3.6 7.2 8.6 10.1 226.0 345.0 517.0 680.0
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