Step 1: - a) Weeks of supply: We use the formula: Weeks of supply = (Inventory / Cost of sales) * 52 Given: Inventory = $1,010 Cost of sales = $14,280 Substituting the values: Weeks of supply = (1010 / 14280) * 52 = (0.0708) * 52 = 3.68 weeks Explanation: - To find the weeks of supply, we use the formula: Weeks of supply = (Inventory / Cost of sales) * 52. This formula calculates how many weeks the current inventory would last based on the rate of sales over a year. Step 2: - b) Percentage of assets committed to inventory: We use the formula: Percentage of assets committed to inventory = (Inventory / Total assets) * 100 Given: Inventory = $1,010 Total assets = $8,060 Substituting the values: Percentage of assets committed to inventory = (1010 / 8060) * 100 = (0.1253) * 100 = 12.53% Explanation: - This calculation determines what percentage of Arrow's assets are tied up in inventory. The formula used is Percentage of assets committed to inventory = (Inventory / Total assets) * 100. Step 3: - c) Inventory turnover: We use the formula: Inventory turnover = Cost of sales / Inventory Given: Cost of sales = $14,280 Inventory = $1,010 Substituting the values: Inventory turnover = 14280 / 1010 = 14.14 times per year Explanation: - Inventory turnover measures how many times a company's inventory is sold and replaced over a period. The formula used is Inventory turnover = Cost of sales / Inventory. Step 4: - d) Relative supply chain performance: Given that the manufacturer's inventory turnover is 13.5 times per year, we compare it with Arrow's inventory turnover. Arrow's supply chain performance relative to the manufacturer's = Arrow's inventory turnover / Manufacturer's inventory turnover Substituting the values: Relative supply chain performance = 14.16 / 13.5 = 1.05 So, Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is approximately 1.05 times. Explanation: - This step compares Arrow's inventory turnover rate with that of a manufacturer. We use the formula: Arrow's supply chain performance relative to the manufacturer's = Arrow's inventory turnover / Manufacturer's inventory turnover. Final Answer: - a) Weeks of supply: 3.68 weeks b) Percentage of assets committed to inventory: 12.53% c) Inventory turnover: 14.14 times per year d) Relative supply chain performance: 1.05 times

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Operations management