Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.537.53 million and inventory was $1.551.55 million. This year, costs of goods sold is $8.638.63 million and inventory investment is $1.631.63 million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places).

Question

Lea Gilmore

Business

17 January, 06:08

Mattress Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.537.53 million and inventory was $1.551.55 million. This year, costs of goods sold is $8.638.63 million and inventory investment is $1.631.63 million. a) What was its weeks of supply last year? nothing weeks (round your response to two decimal places).

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Answers (1)

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Kristopher · Answer 1

Weeks supply = 10.70 million (Approx)

Explanation:

Given:

Last year, cost of goods sold = $7,537.53 million

Last year Inventory = $1,551.55 million

Computation:

Average cost of sold good on week basis = Cost of goods sold / Total number of weeks

Average cost of sold good on week basis = $7,537.53 million / 52

Average cost of sold good on week basis = 144.96 million

Computation of weeks supply:

Weeks supply = Last year Inventory / Average cost of sold good on week basis

Weeks supply = $1,551.55 million / 144.96 million

Weeks supply = 10.70 million (Approx)