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.)
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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.)
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