OPERATION MANAGEMENT
OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 10, Problem 1C
Summary Introduction

Case summary:

The case deals with linking turns to gross margin. It is stated that the gross margin is said to be the difference between the cost of goods and the revenue. The case further explains the relationship between annual inventory turns and gross margin percentage. Additionally, the following graph (The annual inventory turns and gross margins of several retailers) is given:

OPERATION MANAGEMENT, Chapter 10, Problem 1C

To determine: Whether Person X sees a pattern between gross margin percentage and inventory turns.

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