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Please solve all questions of this problem steps by steps. Please show me your calculations of the answers. Please do not use any excel spreadsheets.
Please solve all questions of this problem steps by steps. Please show me your calculations of the answers. Please do not use any excel spreadsheets. I will high rate your work. Thanks a lot. Problem 3: Late Deliveries Lead time (days) =12 Current Service Level Price per unit =$150 - 60% are on time Net cost per unit =$100 * 20% are 2 days late Inventory carrying cost =30% * 10% are 4 days late Cost of capital =16% * 5% are 7 days late Demand per day (units) =1500 * 5% are 10 days late In-transit inventory carrying cost =18% 9. Assume that there is a 40% improvement in the service level. What is the average lead time in days for this improved service? a. 12.66 days b. 12.81 days c. 11.09 days d. none of the above 10. What is the resulting annual savings in inventory carrying cost from this service improvement? a. $29,700.00 b. $44,550.00 c. $24,300.00 d. none of the above 11. To achieve this service improvement, you will need to invest in more reliable transportation service. The increased freight expense is 16% of the inventory savings between the current service and the proposed service. What is the annual net cash flow increase (decrease) for the proposed service level? a. $20,790.00 b. $9,156.00 c. $13,860.00 d. none of the above
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