8. Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following: a. On-time delivery increases from 90 percent to 95 percent, with a 5 percent b. Order fill rate decreases from 96 percent to 92 percent with inventory reduced by increase in transportation cost. 5 percent. Selling price/order $150/order Gross margin/order $35/order Lost sales rate is as follows On-time delivery failure 15% Order fill failure 20% Annual orders 200,000 Rehandling cost $125/order Invoice deduction/service failure $150/order Transportation cost = $1,000,000 Average inventory$1,000,000 Interest cost = $1,500,000 Inventory carrying cost rate 25%/s/yr. Warehousing cost = $750,000 Other operating cost $500,000 Cash- $3,000,000 Accounts receivable $4,000,000 Fixed assets $30,000,000 Tax rate 40% 8. Construct a financial model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following: a. On-time delivery increases from 90 percent to 95 percent, with a 5 percent b. Order fill rate decreases from 96 percent to 92 percent with inventory reduced by increase in transportation cost. 5 percent. Selling price/order $150/order Gross margin/order $35/order Lost sales rate is as follows On-time delivery failure 15% Order fill failure 20% Annual orders 200,000 Rehandling cost $125/order Invoice deduction/service failure $150/order Transportation cost = $1,000,000 Average inventory$1,000,000 Interest cost = $1,500,000 Inventory carrying cost rate 25%/s/yr. Warehousing cost = $750,000 Other operating cost $500,000 Cash- $3,000,000 Accounts receivable $4,000,000 Fixed assets $30,000,000 Tax rate 40%