1. Using the data from the Dell Computer annual report determine how Dell calculated the four days' supply of raw materials. Do you think four days' supply is a valid representation of the amount of raw material Doll has on hand at the end of the year? Why or why not?
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Net revenue (fiscal year 2005) $49,205
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Cost of revenue (fiscal year 2005) $40,190
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Production materials on hand(28 january 2005) $228
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Work-in-process and finished goods on hand (28 january 2005) $231
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Days of supply in inventory 4 days
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2. A supplier to the electric utility industry produces power generators. The transportation costs are high. One market area includes the lower part of the Great Lakes region and the upper portion of the south eastern region. More than 600,000 tons are tobe shipped to eight major customer location, as shown in the table below. What is the center of gravity (centroid) for the electric utilities supplier?
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(CUSTOMER LOCATION) (TONS SHIPPED) ( X.Y COORDINATES)
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Three rivers, MI 5,000 (7,13)
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Fort Wayne, IN 92.000 (8,12)
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Columbus, OH 70.000 (11,10)
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Kingsport, TN 35.000 (11,7)
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Akron, OH 9.000 (12,4)
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Wheeling, WV 227.000 (13,11)
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Roanoke, VA 16.000 (14,10)
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153.000 (15,5)
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