A Television Manufacturer Would Like to Reduce Its Inventory $\$ 1,500,000$

question 32

Essay

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on inventories form last year's financial statement:
Raw materials $\$ 1,500,000$
Work-in-process $\$ 1,200,000$
Finished goods $\$ 800,000$

In addition, the cost of goods sold last year (50 weeks) was $20 million.
a. What is their total inventory (measured as weeks of supply)?
b. What is their inventory turnover?

Recognize the role of strategic organizational and contractual forms to mitigate hold-up risks.

Understand the relationship between price elasticity of demand and revenue.

Comprehend the concept and calculation of individual and market demand elasticity.

Explain consumer surplus and how it is affected by changes in price.

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Definitions:

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to a few seconds.

Selectively Attended

The cognitive process of focusing on a particular object in the environment for a certain period, while ignoring other perceivable information.

Long-term Memory

A type of memory storage that can hold information for extended periods of time, ranging from minutes to a lifetime, encompassing a wide range of knowledge, experiences, and skills.

Meaningful

Having significance, purpose, or value that is important to an individual or group.