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:### Inventory Data (All amounts in millions of U.S. dollars)| | QUARTER 1 (JANUARY THROUGH MARCH) | QUARTER 2 (APRIL THROUGH JUNE) | QUARTER 3 (JULY THROUGH SEPTEMBER) | QUARTER 4 (OCTOBER THROUGH DECEMBER) ||----------------------------|-----------------------------------|--------------------------------|------------------------------------|--------------------------------------|| **Sales (total quarter):** | | | | || United States | 356 | 532 | 552 | 436 || Canada | 130 | 127 | 116 | 151 || Europe | 42 | 49 | 54 | 39 || **Cost of goods sold (total quarter)** | 338 | 445 | 465 | 398 || **Raw materials at the Louisville plant (end-of-quarter)** | 93 | 49 | 79 | 89 || **Work-in-process and finished goods at the Louisville plant (end-of-quarter)** | 194 | 175 | 127 | 176 || **Distribution center inventory (end-of-quarter):** | | | | || United States | 38 | 46 | 30 | 40 || Canada | 14 | 20 | 21 | 19 || Europe | 6 | 7 | 11 | 6 |### Questionsa. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.)**Average inventory turnover** [Text Box]b. If you were given the assignment to increase inventory turnover, what would you focus on?- Reduce the amount of inventory or reduce sales or both- Reduce the amount of **Question:**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.)***Input Box:**Weeks of raw material supply: [__________] *Note: The answer should be calculated based on the company's usage, and entered rounded to two decimal places.*

Inventory management is the management in which inventory is managed, controlled, stored, and sell…

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Practical Management Science

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