Your company has an average annual inventory of $70 million. Its annual cost of goods sold (COGS) is $560 million. Order costs are $195 per order, and inventory carrying costs are estimated at 23%. What are the annual turns (how many order cycles are there per year)?
A. 8
B. 4
C. 6
D. 0.125
Solution
Your company has an average annual inventory of $70 million. Its annual cost of goods sold (COGS) is $560 million. Order costs are $195 per order, and inventory carrying costs are estimated at 23%. What are the annual turns (how many order cycles are there per year)?
Answer:
A. 8
.
USPS® Forced Meter Migration - How to Know if Your Postage Meter Will Soon be...
Your company has an average annual inventory of $70 million- Its annua.docx
1. Your company has an average annual inventory of $70 million. Its annual cost of goods sold
(COGS) is $560 million. Order costs are $195 per order, and inventory carrying costs are
estimated at 23%. What are the annual turns (how many order cycles are there per year)?
A. 8
B. 4
C. 6
D. 0.125
Solution
Your company has an average annual inventory of $70 million. Its annual cost of goods
sold (COGS) is $560 million. Order costs are $195 per order, and inventory carrying costs
are estimated at 23%. What are the annual turns (how many order cycles are there per
year)?
Answer:
A. 8
