Question

A manufacturer sells 4,100 computers per year and maintains an average inventory of 1,900 computers. How many days-of-supply can the manufacturer carry in inventory?

a) 45 days
b) 60 days
c) 90 days
d) 120 days

Answer 1

The days-of-supply for the manufacturer with an average inventory of 1,900 computers and sales of 4,100 computers per year would normally be approximately 169 days. However, since this result does not match any of the given options, there appears to be an error.

Step-by-step explanation:

To calculate the number of days-of-supply the manufacturer can carry in inventory, we use the formula:

Days of Supply = (Average Inventory / Units Sold per Period) × Number of Days in the Period

The manufacturer sells 4,100 computers per year, which is about 11.23 computers per day (4,100 computers / 365 days).

With an average inventory of 1,900 computers, we can now calculate the number of days-of-supply:

Days of Supply = (1,900 computers / 11.23 computers per day)

This calculation results in approximately 169 days of supply. However, since none of the answer choices matches this result, we should recheck our calculation or assume that there may have been a mistake in either the problem details or the provided answer choices.