Cyberphone, a manufacturer of cell phone accessories,ended the current year with annual sales (at cost) of $48 mil-lion. During the year, the inventory of accessories turned oversix times. For the next year, Cyberphone plans to increase an-nual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventoryvalue required if Cyberphone maintains the same inven-tory turnover during the next year?b. What change in inventory turns must Cyberphone achieveif, through better supply chain management, it wants tosupport next year’s sales with no increase in the averageaggregate inventory value?
Cyberphone, a manufacturer of cell phone accessories,ended the current year with annual sales (at cost) of $48 mil-lion. During the year, the inventory of accessories turned oversix times. For the next year, Cyberphone plans to increase an-nual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventoryvalue required if Cyberphone maintains the same inven-tory turnover during the next year?b. What change in inventory turns must Cyberphone achieveif, through better supply chain management, it wants tosupport next year’s sales with no increase in the averageaggregate inventory value?
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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Question
Cyberphone, a manufacturer of cell phone accessories,
ended the current year with annual sales (at cost) of $48 mil-
lion. During the year, the inventory of accessories turned over
six times. For the next year, Cyberphone plans to increase an-
nual sales (at cost) by 25 percent.
a. What is the increase in the average aggregate inventory
value required if Cyberphone maintains the same inven-
tory turnover during the next year?
b. What change in inventory turns must Cyberphone achieve
if, through better
support next year’s sales with no increase in the average
aggregate inventory value?
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