OM6 ONLINE-LMS INTEGRATED ACCESS
6th Edition
ISBN: 9781337118323
Author: Collier
Publisher: CENGAGE L
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Chapter 12, Problem 2PA
Summary Introduction
Interpretation: Average Inventory value needs to be calculated based on the given information.
Concept Introduction: Inventory turnover helps in finding how many numbers of times a company must purchase inventory over a specified period to sustain in the market.
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Students have asked these similar questions
Josh Smith, the materials manager at a retail store, has determined that a particular product experienced 5 turns last year, with an annual sales volume of $15 million. What was the average inventory value for this product last year?
$2.5 million
$2.75 million
$3 million
$5 million
Demand of Hairdryer from January to July
Month
Demand
January
2800
February
2870
March
2968
April
3000
May
3100
Jun
3150
July
3400
a). Calculate forecast future demand for May, June, July and August by using 3 months simple moving average.
b) Determine TWO (2) consequences if the company produce supply more than the customer demand.
c) In your opinion, provide ONE (1) perspective you will look into supplier before made a decision to select a supplier.
Tinker's 2020 cost of goods sold was $750,000 and 2019 cost of goods sold was $770,000. The inventory at the end of 2020 was $188,000 and $208,000 at the end of 2019. What was Tinker's inventory turnover during 2020?
Group of answer choices
A)3.79
b)3.99
C)3.84
D)3.89
E)None of the above
Chapter 12 Solutions
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