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 QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7
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 QUARTER 4 (OCTOBER THROUGH SEPTEMBER) THROUGH DECEMBER) All amounts in millions of U.S. dollars Sales (total quarter): United states Canada Europe 458 370 140 124 73 39 594 412 132 121 22 16 Cost of goods sold (total quarter) 584 465 657 484 Raw materials at the Louisville plant (end-of-quarter) 98 50 61 85 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 182 172 132 278 Distribution center inventory (end-of-quarter): United states Canada Europe 48 48 51 39 15 19 15 25 7 5 5 15 7 7
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...
Related questions
Question
A. What is the average invention turnover for the firm?
B if you were given the assignment to increase inventory turnover, what would you focus on?
Reduce inventory or sale or both
Increase inventory or sale or both
Reduce inventory or sale or both
C. The company reported that it used $500m worth of raw material during the yeR. On average, how many weeks of supply of raw material are on hand at the factory?
Transcribed Image Text: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
QUARTER 4
(OCTOBER
THROUGH
SEPTEMBER)
THROUGH
DECEMBER)
All amounts in millions of U.S. dollars
Sales (total quarter):
United states
Canada
Europe
458
370
140
124
73
39
594
412
132
121
22
16
Cost of goods sold (total quarter)
584
465
657
484
Raw materials at the Louisville plant
(end-of-quarter)
98
50
61
85
Work-in-process and finished goods at
the Louisville plant (end-of-quarter)
182
172
132
278
Distribution center inventory
(end-of-quarter):
United states
Canada
Europe
48
48
51
39
15
19
15
25
7
5
5
15
7
7
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