A company has sales of $15 million/year. Last year the company spent $3.5 M for raw materials. It also paid its direct labor staff 1.7M in total labor costs. The company allocated $2M to overhead. The average inventory last year was $2 million.
a. What is the inventory turns ratio?
b. What would be the reduction in average inventory if do better materials management inventory turns were increased to 10 times per year
c. If the cost of carrying inventory is 25% of the average inventory, what is the annual savings?
Recently Asked Questions
- A graph that uses individual scores to show the pattern of the relation of two variables is a
- Two variables , X and Y , have a strong linear correlation . Under what conditions can you determine the direction of causality just from knowing the
- Which of the following influences the power of a study using an analysis of variance ?