It\'s the same question just showing answer choices for both parts of question C

Question

It's the same question just showing answer choices for both parts of question C.

This Question: 10 pts 14 of 27 (0 complete) This Quiz: 70 pts possible Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.55 million and inventory was $1.46 million. This year, costs of goods sold is $8.62 million and inventory investment is $1.61 million. a) What was its weeks of supp y last year? weeks round your response to two decimal places) b) What is its weeks of supply this year? weeks (round your response to two decimal places) c) Is Mattress Wholesalers making progress in its inventory reduction effort? Since the number of weeks that cover the supply has ?| Mattress Wholesalers is making in its inventory-reduction effort no progress negative progress progress Enter your answer in each of the answer boxes please ensure you download our latest sofware update, version 5.2, to ensure compatibility with MANAGEMENT

Explanation / Answer

a) Inventory turnover ratio =COGS/Average inventory = 7.55/1.46 = 5.17 times

Weeks of supply = 52 weeks/ inventory turnover ratio = 52/5.17 = 10.06 weeks of inventory is on hand

b)

Inventory turnover ratio = 8.62/1.61 = 5.354 times

Weeks of supply = 52/5.354 = 9.71 weeks of inventory is on hand

c) The no of weeks that cover the supply has decreased, Mattress wholesales is making progress in its inventory

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