Question - Consider the following annual information about the three companies in the same manufacturing industry:
Company A B C
Production Method JIT JIT Traditional
Sales Revenue 2,100,000,000 790,000,000 13,000,000,000
# of Employees 6,000 3,400 64,000
Cost of goods sold 1,470,000,000 568,800,000 7,800,000,000
Inventories (ave) 104,000,000 25,280,000 1,560,000,000
Question:
(a) Compute the following for each company:
(1) Sales per employee
(2) Inventory turnover
(3) Inventory as a percentage of sales
(b) Evaluate three companies' performance
(c) C company is considering the implementation of a just-in-time (JIT) inventory system. Please give 6 factors necessary to successful implementation.