Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE ANSWER THE QUESTION, SHOWING ALL WORK ON ALL PARTS QUICKLY. THANK YOU. 1. Given a 97% customer service level, whag is the number of

PLEASE ANSWER THE QUESTION, SHOWING ALL WORK ON ALL PARTS QUICKLY. THANK YOU.
1. Given a 97% customer service level, whag is the number of service failures?
2. Using you information from #1, what is the number of rectified orders?
3. What is the number of refused orders?
4. What is the cost of goods sold per order?
5. What is the cost of service failures?
image text in transcribed
\begin{tabular}{|l|c|c|} \hline & & 97\% CSL \\ \hline Average price per order & $600 & \\ \hline Gross margin per order & $115 & \\ \hline COGS & Question 4 & \\ \hline Annual orders & 30,000 & \\ \hline Number of orders not filled correctly & & Question 1 \\ \hline & & \\ \hline Of orders not filled correctly & & \\ \hline Rectified orders & 90% & Question 2 \\ \hline With invoice discount & $100 & \\ \hline With additional handling & $50 & \\ \hline Orders refused & 10% & Question 3 \\ \hline Cost of Service Failures & & Question 5 \\ \hline & $450,000 & \\ \hline Transportation cost & $1,500,000 & \\ \hline Average inventory & $350,000 & \\ \hline Interest cost & 20% & \\ \hline Inventory carrying cost & $400,000 & \\ \hline Warehousing cost & $900,000 & \\ \hline Other operating costs & $150,000 & \\ \hline Cash & 35%,000 & \\ \hline Accounts receivable & & \\ \hline Fixed assets & & \\ \hline Tax rate & & \\ \hline \end{tabular}

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

Strategic Management Concepts

Authors: Frank Rothaermel

3rd edition

978-1259420474, 1259420477, 978-1259913747

More Books

Students also viewed these General Management questions