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can you show me how to calculate cash flow lost for this problem? Part 1: Order Fill Rate Firm A faces the following: 100 units
can you show me how to calculate cash flow lost for this problem?
Part 1: Order Fill Rate
Firm A faces the following:
100 units per order
3000 orders per year
Pre-tax profit per unit = $250
75% of incomplete orders backordered; 25% cancelled
Backorder costs per backorder = $200
Invoice deduction per backordered order = $300
1. What is the total lost profit or cash flow at an 85% order fill rate?
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