Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Based off using this data are my answers correct? How do i solve if i am not correct Assume an organization's current service level on
Based off using this data are my answers correct? How do i solve if i am not correct
Assume an organization's current service level on order fill is as follows Current order fill 80% Number of orders per year = 5,000 Percentage of unfilled orders back-ordered 70 % Percentage of unfilled orders cancelled 3 Back order costs per order $150 Lost pretax profit per cancelled order S12,500 a. What is the lost cash flow to the seller at this 80 percent service level? b. What would be the resulting increase in cash flow if the seller improved order fill to 92 percent? c. If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Question 3 6 pts If the seller invested $2 million to produce this increased service level, what would be the ROI? 115.7% 192.75% 86.47% 51.88% Question 4 2 pts If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Yes No Assume an organization's current service level on order fill is as follows Current order fill 80% Number of orders per year = 5,000 Percentage of unfilled orders back-ordered 70 % Percentage of unfilled orders cancelled 3 Back order costs per order $150 Lost pretax profit per cancelled order S12,500 a. What is the lost cash flow to the seller at this 80 percent service level? b. What would be the resulting increase in cash flow if the seller improved order fill to 92 percent? c. If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Question 3 6 pts If the seller invested $2 million to produce this increased service level, what would be the ROI? 115.7% 192.75% 86.47% 51.88% Question 4 2 pts If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Yes NoStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started