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The Dump is a high-end designer prototypes, closeouts, and overstocks, near Philadelphia, PA. Due to recent market pressures, the company is trying to reduce inventory in its supply chain. In 2019, cost of goods sold was $7.6 million and inventory was $1.5 million. This year, 2020, cost of goods sold is $8.6 million and inventory investment of $1.6 million. The value of total assets in 2019 were $50 million and currently it is $45 million. Use the information given to answer following question
A Compute the weeks of supply in 2019 and in 2020.
Compute the percentage of assets committed to inventory investment for 2019 and 2020.
Compute the inventory turnovers for 2019 and 2020.
Using the information in parts a, b, and c, is the Dump making progress in its inventory-reduction efforts? Discuss.
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