Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $30 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment. a) What is the inventory turnover? b) How many weeks of supply does the firm hold?

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $30 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment. a) What is the inventory turnover? b) How many weeks of supply does the firm hold?

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

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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