Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue Cost of sales Inventory Total assets $16,680 $13,980 $1,020 $8,360 a) What is its weeks of supply? weeks (round your response to two decimal places). b) What percentage of Arrow's assets are committed to inventory? ☐ % (enter your response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? decimal places). times per year (round your response to two d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory
by using weeks of supply as well as by inventory turnover.
Arrow Distributing Corp.
Net Revenue
$16,680
Cost of sales
$13,980
Inventory
$1,020
Total assets
$8,360
a) What is its weeks of supply?
decimal places).
weeks (round your response to two
b) What percentage of Arrow's assets are committed to inventory?
response as a percentage rounded to two decimal places).
c) What is Arrow's inventory turnover?
decimal places).
% (enter your
times per year (round your response to two
d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's
supply chain performance relative to the manufacturer's, as measured by
inventory turnover, is
better
worse
the same
Transcribed Image Text:Dara Jones, operations manager of Arrow Distributing Corp., likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue $16,680 Cost of sales $13,980 Inventory $1,020 Total assets $8,360 a) What is its weeks of supply? decimal places). weeks (round your response to two b) What percentage of Arrow's assets are committed to inventory? response as a percentage rounded to two decimal places). c) What is Arrow's inventory turnover? decimal places). % (enter your times per year (round your response to two d) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is better worse the same
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