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Winning strategy The measure of number of times that an inventory is converted to sales in a given period is refered to as inventory turns. It is calculated as the cost of goods sold divided by the average investment in the stock for the period. Generally, the faster the products sell the better and more efficient is the inventory operation. The higher the inventory turnover is, the less of a financial investment you need to put into inventory to keep the operation running. It is therefore either advisable come up with a strategy to improve the inventory turnover rate by increasing goods sold or decreasing the company’s investment (Brigham and Eugene, 102). The following explanations will be some strategies that would help to double the turns ratio of McSemi technologies. McSemi should increase demand for the product line by working with the marketing team. The marketing department should focus on advertisements to locations frequented by a majority of the target market. This may be achieved by offering a sales promotion such as a buy-one, get-one-half-off special to increase the quantity of inventory leaving the warehouse in a given period and to lure more customers. The marketing department should work closely with the operations department and the sales department in that they should both have the relevant information of the overall costs to design wining strategies to attract more customers who will purchase products hence increasing profits and production. The chief executive officer should set a better overall price for the products to increase demand, which in turn boosts sales and inventory turnover. Either establish a temporary discount or set a more permanent lower price for slow-selling merchandise. The law of demand states that the demand for a certain commodity will increase if the prices reduces and vice versa. The chief executive officer should discuss with the distributors to look for a better price for the products or materials they buy, to reduce your inventory investment. The quality management will have to set up favorable standard of that favor the firm as well as the customer. When they set high prices, the marketing and operations department will have a difficult time to set up prices for the products. The quality management should also focus on purchasing the products that would sell consistently. Sometimes you find that some few products take much time before they are sold while others sell rapidly ( McEachern and William, 73 ). Those products that do not sell quickly drag the general inventory turnover rate. In this case, the rate of production and cost of goods sold will reduce. The company should forcus on how to reduce the amount of stock manufactured in a given period. The company should enforce a strategy to buy materials for the production of finished goods until they are finished is when they purchase another raw material. The chief executive and the operations department should schedule a budget whereby they do not buy materials in bulk, which may encourage wastage. Using this scheme, the company will use the ploughed back profits earned from selling the first purchase to buy more materials for the production, instead of investing more money from the profits. The company should focus on reducing the lead times that will reduce the carrying cost of goods and improve the overall cash flows. The preprocessing lead-time should be quick. The time to manufacture the item and time after processing the lead-time should be detailed to facilitate the actions of every department towards achieving their responsibility. The shorter the lead-time of manufacturing a product the faster client needs is met.

Works Cited
Brigham, Eugene F. Financial Management: Theory & Practice. Hinsdale, Ill: Dryden Press, 2013. Print.
McEachern, William A. Microeconomics: A Contemporary Introduction. Cincinnati, Ohio: South-Western College Pub, 2000. Print.