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The owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $4,500,000. The average inventory in dollars was $500,000. GR plans on increasing next year%u2019s sales by 10 percent while maintaining its same average inventory in dollars of $500,000.
a. Calculate the expected inventory turnover for next year.
b. Calculate the expected weeks of supply.
I calculated 9.9 or 10 turnovers for a. (4,500,000 x .10 + 4,500,000, then divided by 500,000 inventory.) for b, im not sure how to go about it.
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The solution does a great job of answering the question. The solution is brief and very easy to follow along. All the steps are clearly shown. It can be easily understood by anyone with basic understanding of topic.
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