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(Answered) U.S. Airfilter has hired you as a supply chain consultant. The


U.S. Airfilter has hired you as a supply chain consultant. The
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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 Quarter 2 Quarter 3 Quarter 4,

 

(January (April (July through (October through,

 

through March) through June) September) December),

 

Sales (total quarter): ,

 

United States 300 350 405 375,

 

Canada 75 60 75 70,

 

Europe 30 33 20 15,

 

,

 

Cost of goods 280 295 340 350,

 

sold (total quarter) ,

 

,

 

Raw materials at 50 40 55 60,

 

the Louisville ,

 

plant (end-of-quarter ,

 

,

 

Work-in-process 100 105 120 150,

 

and fi nished ,

 

goods at the ,

 

Louisville plant ,

 

(end-of-quarter) ,

 

,

 

Distribution center ,

 

inventory (end-of-quarter): ,

 

United States 25 27 23 30,

 

Canada 10 11 15 16,

 

Europe 5 4 5 5,

 

,

 

All amounts in millions of U.S. dollars. ,

 

,

 

a. What is the average inventory turnover for the fi rm? ,

 

b. If you were given the assignment to increase inventory turnover, what would you ,

 

focus on? Why? ,

 


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