U.S. Airfilter has hired you as a supply chain consultant. The
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 ,
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? ,
This question was answered on: Dec 18, 2020
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