The U.S. Airfilter company 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 loca

  

The U.S. Airfilter company 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
(JANUARY
THROUGH
MARCH) QUARTER 2
(APRIL THROUGH
JUNE) QUARTER 3
(JULY
THROUGH
SEPTEMBER) QUARTER 4
(OCTOBER
THROUGH
DECEMBER)
All amounts in millions of U.S. dollars
Sales (total quarter):
United states 422 480 460 376
Canada 91 125 101 94
Europe 74 35 41 18
Cost of goods sold (total quarter) 417 456 432 352
Raw materials at the Louisville plant
(end-of-quarter) 67 44 82 83
Work-in-process and finished goods at
the Louisville plant (end-of-quarter) 108 121 141 191
Distribution center inventory
(end-of-quarter):
United states 60 39 46 58
Canada 15 17 16 26
Europe 6 7 10 7

a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.)
Average inventory turnover

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b. If you were given the assignment to increase inventory turnover, what would you focus on?
Reduce the amount of inventory or increase sales or both
Reduce the amount of inventory or reduce sales or both
Increase the amount of inventory or increase sales or both

c. The company reported that it used 0M worth of raw material during the year. On average, how many weeks of supply of raw material are on hand at the factory? (Round your answer to 2 decimal places.)
Weeks of supply ________

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