Operations Management: Processes and Supply Chains (11th Edition)
Operations Management: Processes and Supply Chains (11th Edition)
11th Edition
ISBN: 9780133872132
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
Question
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Chapter 12, Problem 2P

A

Summary Introduction

Interpretation: The required average aggregate inventory value, if the company is maintaining the same inventory turnover for the next year is to be determined.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

B

Summary Introduction

Interpretation: Changes in inventory turns are to be discussed that should be adapted by Cyberphone to support next year’s sales with no increase in the average aggregate inventory value through better supply chain management.

Concept Introduction: The Company has ended the year with an annual sale of $48 million. In that year, the company has experienced a six times increase in its inventory of accessories. Now, for the next year, the company is planning to raise its annual sales by 25%.

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