Chapter 11, Problem 8P

Question:

•• 11.8 Mattress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $1.5 million. This year, cost of goods sold is $8.6 million and inventory investment is $1.6 million.

1. a. What were the weeks of supply last year?
2. b. What are the weeks of supply this year?
3. c. Is Mattress Wholesalers making progress in its inventory-reduction effort?