Question 1 of 30
A manufacturing company is analyzing its supply chain performance using Dynamics 365 Supply Chain Management. They have identified that their average lead time for raw materials is 15 days, and they want to reduce this lead time by 20%. If the company currently holds an average inventory of $200,000 in raw materials, what would be the new average lead time after the reduction, and how would this impact their inventory turnover ratio, assuming the cost of goods sold (COGS) is $1,200,000 annually?
12 days; Inventory turnover ratio increases to 6 times
10 days; Inventory turnover ratio remains at 5 times
13 days; Inventory turnover ratio decreases to 4 times
14 days; Inventory turnover ratio increases to 5 times

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