1. Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows the following inventory investment by category: raw materials, $3,129,500; work-in-process, $6,237,000; and finished goods, $2,686,500. This year’s cost of goods sold will be about $32.5 million. Assuming 52 business weeks per year, express total inventory as:
a) Weeks of supply
b) Inventory turns
2. What are some various plans for maintaining customer loyalty when a business has a new owner? How can you reassure the customers that the change is positive?