The answer is A.
The Regal marine maintains raw-material inventory for about 22 days. Regal Marine makes luxury piece boats that vary in size from small ski boats to forty-foot luxury yachts. Regal Marine’s purchases as a sales percentage are sixty percent. Director of materials, Marty clement describes why the management of supply chain is so vital to the success of the company. The most significant reason is cost control. The control of raw material inventory is the biggest area of cost control. Through their supply chain management, they’ve been able to lessen their daily inventory of on-hand raw material to about 22 days.
