U.S. Airfilter 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 300 350 405 375 Canada 75 60 75 70 Europe 30 33 20 15 Cost of goods sold (total quarter) 280 295 340 350 Raw materials at the Louisville plant (end-of-quarter) 50 40 55 60 Work-in-process and finished goods at the Louisville plant (end-of-quarter) 100 105 120 150 Distribution center inventory (end-of-quarter): United states 25 27 23 30 Canada 10 11 15 16 Europe 5 4 5 5 What is the average inventory turnover for the firm? Note: Round your answer to 3 decimal places. If you were given the assignment to increase inventory turnover, what would you focus on? multiple choice Increase the amount of inventory or increase sales or both Reduce the amount of inventory or increase sales or both Reduce the amount of inventory or reduce sales or both 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? Note: Round your answer to 2 decimal places.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 3.10A

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U.S. Airfilter 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	300	350	405	375
Canada	75	60	75	70
Europe	30	33	20	15
Cost of goods sold (total quarter)	280	295	340	350
Raw materials at the Louisville plant (end-of-quarter)	50	40	55	60
Work-in-process and finished goods at the Louisville plant (end-of-quarter)	100	105	120	150
Distribution center inventory (end-of-quarter):
United states	25	27	23	30
Canada	10	11	15	16
Europe	5	4	5	5

What is the average inventory turnover for the firm?

Note: Round your answer to 3 decimal places.
If you were given the assignment to increase inventory turnover, what would you focus on?

multiple choice
- Increase the amount of inventory or increase sales or both
- Reduce the amount of inventory or increase sales or both
- Reduce the amount of inventory or reduce sales or both
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?

Note: Round your answer to 2 decimal places.

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