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Mattress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $1.5 million. This year, cost of goods sold is $8.6 million and inventory investment is $1.6 million.
a) What were the weeks of supply last year?
b) What are the weeks of supply this year?
c) Is Mattress Wholesalers making progress in its inventory reduction effort?
Determine the factors of good management you would apply to establish this competitive advantage.
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