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Please help me out with these problems. Problem 5: Cost of Lost Sales Current service level 80% orders per year 500 Units per order 25
Please help me out with these problems.
Problem 5: Cost of Lost Sales Current service level 80% orders per year 500 Units per order 25 Price per unit $150 Net cost per unit $100 Re-handling cost per backorder $90 Administrative cost per backorder -$30 Reshipping cost per backorder $130 Invoice deduction per backorder $200 Percent incomplete orders backordered 75% Percent incomplete orders cancelled 25% Inventory carrying cost 30% Cost of capital 16% 16. What is the total loss of cash flow under the current service level? a. $127,500.00 b. $86,000.00 c. $96,250.00 d., none of the aboveStep by Step Solution
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