Using the supply chain finance model developed for Study Question 5, calculate the impact on profit margin;

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Using the supply chain finance model developed for Study Question 5, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios:

Scenario A Transportation costs increase = 20%

Warehousing costs decrease = 5%

Average inventory decrease = 10%

Scenario B Warehousing is outsourced with the following:

Net fixed assets reduced = 20%

Inventory reduced = 15%

Warehousing costs = $0 Transportation costs reduced = 5%

Outsourcing provider costs = $2,500,000

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Supply Chain Management A Logistics Perspective

ISBN: 9781305859975

10th Edition

Authors: John J. Coyle, Jr. Langley, C. John, Robert A. Novack, Brian J. Gibson

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