Cyberphone, a manufacturer of cell phone accessories,ended the current year with annual sales (at cost) of $48 mil-lion. During the year, the inventory of accessories turned oversix times. For the next year, Cyberphone plans to increase an-nual sales (at cost) by 25 percent.a. What is the increase in the average aggregate inventoryvalue required if Cyberphone maintains the same inven-tory turnover during the next year?b. What change in inventory turns must Cyberphone achieveif, through better supply chain management, it wants tosupport next year’s sales with no increase in the averageaggregate inventory value?

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter15: Retailing, Direct Marketing, And Wholesaling
Section15.1: L.l.bean: Open 24/7, Click Or Brick
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Cyberphone, a manufacturer of cell phone accessories,
ended the current year with annual sales (at cost) of $48 mil-
lion. During the year, the inventory of accessories turned over
six times. For the next year, Cyberphone plans to increase an-
nual sales (at cost) by 25 percent.
a. What is the increase in the average aggregate inventory
value required if Cyberphone maintains the same inven-
tory turnover during the next year?
b. What change in inventory turns must Cyberphone achieve
if, through better supply chain management, it wants to
support next year’s sales with no increase in the average
aggregate inventory value?

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