Calculate the inventory turnover rate when monthly net


10. Calculate the inventory turnover rate when monthly net sales are $120 million and average inventory evaluated at the selling price is $240 million. What might this product be and comment on this level of turnover for such a product.

11. Continuing with Problem 10, calculate the days of inventory (DOI) if average inventory is $120 million (calculated in terms of costs) and the monthly cost of goods sold (COGS) is $60 million. Use 30 days per month. What product might be described by these data? Comment on what might be an adequate level of DOI (days of inventory) for such a product.

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Operation Management: Calculate the inventory turnover rate when monthly net
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