799-301 Chapter 02

6 inventory turns company ttl cogs in m avg inv oh

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Unformatted text preview: FICANCE OF SUPPLY MANAGEMENT SUPPLY MANAGEMENT TERMINOLOGY •  Profit- Leverage Effect ($ Dollars) •  Return on Assets Effect – ROA / ROI •  Inventory Turn Effect Gross sales /net revenue Cost of Goods Sold (materials and manufacturing) Gross Profits General and AdministraOve expenses (45%) Profit before Taxes Return on Assets (based on $200,000 in Assets) $1,000,000 -$500,000 $500,000 -$450,000 $50,000 25% Cost of Goods Sold Return on Investments (based on COGS) $500,000 10% $1,000,000 -$480,000 $520,000 -$450,000 $70,000 35% $480,000 14.6% INVENTORY TURNS COMPANY TTL COGS in $M Avg INV OH TURNS Margin % Margin $M ROI % A $40.0 $30.0 1.3 20% $10.0 33% B $40.0 $20.0 2.0 20% $10.0 50% C $40.0 $10.0 4.0 20% $10.0 100% D $40.0 $ 5.0 8.0 20% $10.0 200% E $40.0 $ 2.0 20.0 20% $10.0 500% Average Inventory On Hand Impact COMP JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC A1 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 A2 $40 $30 $20 $40 $30 $20 $40 $30 $20 $40 $30 $20 B1 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 B2 $35 $32 $29 $26 $23 $20 $20 $17 $14 $11 $8 $5 C $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 D $5 $5 $5 $5 $5 $5 $5 $5 $5 $5 $5...
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This document was uploaded on 03/11/2014 for the course SUPPLY CHA 91 at NYU.

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