Answer Happy

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: Sales (total quarter): United states. Canada Europe Cost of goods sold (total quarter) Raw materials at the Louisville plant (end-of-quarter) Work-in-process and finished goods at the Louisville plant (end-of-quarter) Distribution center inventory (end-of-quarter): United states Canada Europe Average inventory turnover QUARTER 1 (JANUARY THROUGH MARCH) 354 98 65 362 67 Weeks of raw material supply 183 46 17 5 QUARTER 2 (APRIL THROUGH JUNE) All amounts in millions of U.S. dollars. 358 148 40 O Reduce the amount of inventory or reduce sales or both O Reduce the amount of inventory or increase sales or both O Increase the amount of inventory or increase sales or both 383 45 199 QUARTER 3 (JULY THROUGH SEPTEMBER) 28 16 6 530 123 44 493 69 a. What is the average inventory turnover for the firm? (Round your answer to 3 decimal places.) 127 46 24 5 b. If you were given the assignment to increase inventory turnover, what would you focus on? QUARTER 4 (OCTOBER THROUGH DECEMBER) 378 153 21 393 84 239 59 16 7 c. The company reported that it used $500M 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.)