Question

If the annual inventory turns are 4.7, how many weeks of supply does this represent? (Note: 1 year = 52 weeks). Please round your answer to the first decimal place.

Answer 1

An annual inventory turnover of 4.7 equates to approximately 11.1 weeks of supply when you divide 52 weeks by the inventory turns.

Step-by-step explanation:

If the annual inventory turns are 4.7, this represents how quickly a company sells and replaces its inventory over a year. To calculate the number of weeks of supply this equates to, we divide the number of weeks in a year by the annual inventory turns.

The formula to calculate weeks of supply is:

Weeks of Supply

= 52 weeks / Inventory Turns

Using the given inventory turns of 4.7, the calculation is:

Weeks of Supply = 52 / 4.7 ≈ 11.1 weeks

Therefore, an annual inventory turnover of 4.7 turns represents approximately 11.1 weeks of supply, rounded to the first decimal place.