How fast does the company turn its inventory whatin


A manufacturing company producing technology devices reported $60,000,000 in sales over the last year. At the end of the same year, the company had $20,000,000 worth of inventory of ready-to-ship devices. A) Assuming that units in inventory are valued (based on COGS) at $1,000 per unit and are sold for $2,000 per unit, how fast does the company turn its inventory? B) The company uses a 25% per year cost of inventory. For example, if one unit worth $1,000 sits for exactly one year in inventory, the company charges its operations division an inventory cost of $250. What—in absolute terms—is the per unit inventory cost for a product that costs $1,000?

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Operation Management: How fast does the company turn its inventory whatin
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