Inventory turns and days of supply duff manufactures

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Reference no: EM132262572

Inventory Turns and Days of Supply Duff manufactures beer from two primary raw materials, barley and hops. Work-in-process includes milling the grain, Fermentation, and filtration, carbonation, and cellaring, while finished goods includes three grades of beer. The average inventory amounts on hand at any one time last year and the unit costs are as follows. The Duff operates 50 weeks per year, and its cost of goods sold for the past year was $17.5 million. Determine the Duff’s inventory turns and weeks of supply. Duff has used the same suppliers for Barley and Hops for the last 29 years. During that time a new supplier has entered the game they are offering Barley at $3.00 and Hops at $4.50. Determine Duff’s inventory turns and weeks of supply at this new price. Should Duff switch? Raw Materials Average Inventory Unit Cost

Barley 70,000 lbs $2.75 Hops 125,000 lbs $5.00 Milling 2000 lbs $10.50 Fermentation 5000 barrels $6.75 Cellaring 500 barrels $26.10 Duff Swill 250 barrels $65.00 Duff Original 190 barrels $80.00 Duff 200 310 barrels $105.00

Reference no: EM132262572

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