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Part 3 of 4 - Solve: If the seller invested $2,750,000 to produce this increased service level, what would the Return on Investment be?
Part 3 of 4 - Solve: If the seller invested $2,750,000 to produce this increased service level, what would the Return on Investment be? (Note: round to 1 decimal point. Do not enter percent sign or commas) Assume an organization's current service level on order fill is as follows: $2,750,000 Investment see part 2 of 4 87% targeted service level cash flow lost at 87% service level 75%Current order fill see part 1 of 4 cash flow lost at 75% service level 6000Number of orders per year 65% Percent of unfilled orders back-ordered 35% Percent of unfilled orders cancelled 175Back order costs per order 10,000Lost pretax profit per cancelled order Return on Investment: Net return divided by the cost of the investment times 100.
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