Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 16

Akers Inc.maintains average inventory of $1,000,000 (at cost).Last year, Akers sales volume was $10,000,000 and cost of goods sold was $7,000,000.Akers has determined that its inventory carrying cost is 15% annually.What was the inventory turnover rate? How much was inventory carrying cost for the year?