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Supply Chain Design for a retailer

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Following data were collected for a retailer:

Cost of goods sold $ 3,500,000
Gross profit $ 700,000
Operating costs $ 500,000
Operating profit $ 200,000
Total inventory $ 1,200,000
Fixed asset $ 750,000
Long-term debt $ 300,000

Assuming 52 business weeks per year, express total inventory as

a. weeks of supply.
b. inventory turnover.

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Solution Summary

Supply Chain Design for a retailer: weeks of supply and inventory turnover is examined.

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Weeks of Supply:

Average sales per week: 3500,000/52 weeks- 67307.69

Inventory in hand: ...

Solution provided by:
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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