10 Questions
What happened to Company C's inventory days in 2013 compared to 2012?
Company C's inventory days nearly doubled in 2013 compared to 2012.
What was the inventory days in 2014 for Company C?
The inventory days for Company C increased to 844 in 2014.
What was the ending inventory in 2014 compared to the previous fiscal year?
The ending inventory in 2014 doubled from the previous fiscal year.
What type of products did Company C focus on producing in 2014?
Company C focused on producing products for the branded segment.
How much did the costs to produce goods in the Branded segment increase from 2012 to 2014?
The costs to produce goods in the Branded segment increased by more than 100,000,000 USD from 2012 to 2014.
What were the reasons behind Company C's unsatisfactory results in 2014?
Increasing production costs, doubling ending inventory, limited trading market
Why did Company C try to increase production costs?
To increase product quality, production productivity, and pairs produced
What segment did Company C focus on producing products for in 2014?
Branded segment
What caused Company C's trading market to be limited?
Having only two main factories in North America and Asia-Pacific
Why did the management team realize that simply raising the price of products or increasing the number of products produced would hardly increase profits?
Limited trading market
Study Notes
Company C's Performance
- Inventory days for Company C in 2013 increased compared to 2012.
Inventory and Production
- In 2014, Company C's inventory days were 104 days.
- Ending inventory in 2014 decreased compared to the previous fiscal year.
Product Focus
- Company C focused on producing Branded products in 2014.
Production Costs
- Costs to produce goods in the Branded segment increased by 12.1% from 2012 to 2014.
Challenges
- Company C faced unsatisfactory results in 2014 due to increased production costs, inflation, and a limited trading market.
- The management team tried to increase production costs to improve product quality.
Market Limitations
- Company C's trading market was limited due to intense competition and limited distribution channels.
Profitability
- Simply raising prices or increasing production would not significantly increase profits, as the management team realized.
Test your knowledge on inventory management with this quiz! Learn about the impact of inventory days on a company's operations and how it can affect production costs, product quality, and productivity. Explore the case of Company C and analyze the changes in their inventory levels over the years.
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