Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part 2: Financial Impact Changes in order fill rates Using the information below, calculate the cash flow lost for each of the following fill rate

image text in transcribed

Part 2: Financial Impact Changes in order fill rates Using the information below, calculate the cash flow lost for each of the following fill rate % (i.e. customer service): 75%, 80%, 85%, 90%. Then calculate the difference between the rates. 1,200 units per order (average) 4,000 orders per year Pretax profit per unit = $3 Pretax profit per order = $3600 Invoice deduction per order = $450 Percentage of incomplete orders back-ordered is 78% Backorder costs (per order) = $300 Percentage of incomplete orders cancelled is 22% Part 2: Financial Impact Changes in order fill rates Using the information below, calculate the cash flow lost for each of the following fill rate % (i.e. customer service): 75%, 80%, 85%, 90%. Then calculate the difference between the rates. 1,200 units per order (average) 4,000 orders per year Pretax profit per unit = $3 Pretax profit per order = $3600 Invoice deduction per order = $450 Percentage of incomplete orders back-ordered is 78% Backorder costs (per order) = $300 Percentage of incomplete orders cancelled is 22%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance With Monte Carlo

Authors: Ronald W. Shonkwiler

2013th Edition

146148510X, 978-1461485100

More Books

Students also viewed these Finance questions