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After completing construction of a new building, we discovered our inventories are about 40% of what they were 3 months ago.
Throughput has doubled;
how has this news affected flow time after the completed construction and by how much?
A. T(after) = .5T(before)
B. T(after) = 2T (before)
C. T(after) = .4T (before)
D. T(after) = .2T (before)
(1) How many times per year does the company turn over its inventory? (2) If the company's cost of goods sold (COGS) is 60 percent of the annual sales, what is its average inventory?
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