Mylab Operations Management With Pearson Etext -- Access Card -- For Operations Management: Sustainability And Supply Chain Management (13th Edition)
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Chapter 1, Problem 14DQ
Summary Introduction

To determine: The action taken by Company TB to improve productivity.

Introduction: Company TB is a restaurant in the U.S. TB seeks competitive advantages through products of lower cost. The company relies heavily on its operations management to improve its productivity and reduce costs. The biggest success factor of the company is its menu, which is designed with dishes that are fast and easy to prepare.

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Unilever Manufacturing operates year-round. The following data are pulled from thecompany’s most recent semi-annual report.Assets• Raw material inventory $120,000• Work-in-process inventory $50,000• Finished goods inventory $300,000• Property, plant, and equipment $500,000• Other assets $200,000• Total assets $1,150,000Condensed Income Statement• Revenue $2,000,000• Cost of goods sold $600,000• Other expenses $1,000,000• Net income $400,000Calculate the following based on a year duration:(a) Percentage invested in inventory (PIII);(b) Inventory turnover (TURNS); and(c) Weeks of supply (WOS)
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