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Unformatted text preview: Justify your answer. 5. A buyer has received a number of customer complaints that he has been out of stock on a certain category of merchandise. The buyer subsequently decides to increase this category’s product availability from 80% to 90%. What will be the impact on backup stock and inventory turnover? Will your answer be the same if the buyer is implementing an efficient supply chain inventory system? 8. Calculate the GMROI and the inventory turnover given annual sales of $20,000, average inventory (at cost) of $4,000 and a gross margin of 45%. GMROI : Inventory Turnover : .45 = 1.13 (1-1.13)* 4,000...
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This note was uploaded on 04/02/2008 for the course RET 261 taught by Professor Claire during the Spring '08 term at Michigan State University.
- Spring '08