requirement

1) what is the total loss of cash flow under the current service level?

2) improbements are made and the order completion rate increases to 95%. what is the percent change in cash flow improvement from this increased service level versus the previous service level?

Current service level =80% Orders per year = 500 Units per order = 25 Price per unit = $125 Net cost per unit = $75 Re-handling cost per backorder = $80 Administrative cost per backorder = $40 Reshipping cost per backorder = $130 Invoice deduction per backorder = $200 Percent incomplete orders backordered = 80% Percent incomplete orders cancelled = 20% Inventory carrying cost = 30% Cost of capital = 16%