1. Please fill the missing table on financial impact to supply chain service fai
ID: 446368 • Letter: 1
Question
1. Please fill the missing table on financial impact to supply chain service failure. The dat:a provided in the table is for order fill rate of 97%, please fill the missing blanks for 98% failure Use the figure 5.19 as an information source. 1% improvement in order fill rate results in how much improvement in profit? Please show your computations for credit on page following the table. (20 points) Figure 5.19Supply Chain Service Failure Annual orders Correctly filled orders Service failure orders Rectified orders H+ Refused orders Invoice deduction per order Total orders rehandled Revenue per order Invoice deduction from sales Rehandling cost per order Lost sales revenue Rehandling cost Source: Edward J. Bardi, Ph.D. Used with permissionExplanation / Answer
missing the blanks filling for 98% (calculation made according to the formula given the question as used for 97%)
Particulars :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::Amount
Orders fill rate for revenue::::::::::::::::::::::::::$1,500,000*98/100=$1,470,000
Service failures orders::::::::::::::::::::::::::::::::::::1,500,000-1,470,000= 30,000
Lost Sales Order:::::::::::::::::::::::::::::::::: 30,000* 20%(lost sales rate)=6,000
Rectified Order::::::::::::::::::::::::::::::::::::::::::::::::::::::::::30,000 - 6,000=24,000
Net Order sold:::::::::::::::::::::::::::::::::::::::::::::::::::::1,500,000-6000=1,494,000
_____________________________________________________________
Sales:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$150,000,000
Less:
Incentive deduction:::::::::::::::::::::::::::::::24,000 * $10=$240,000
Lost Sales Revenue::::::::::::::::::::::::::::::6,000* $100=$600,000
Net sales:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::$149,160,000
Cost of goods sold:::::::::::::::::::1,494,000 * 53.33:::$79,675,020
Gross Margin:::::::::::$149,160,000 - $79,675,020=$69,484,980
Rehandling Cost:::::::::::::::::::::::::::::::::::30,000 * $20=$600,000
Earning Before Tax:::::::::::$69,484,980-$41,200,000=$28,284,980
Tax $28,284,980 - $3,000,000*40/100=$10,113,992
Net income:$28,284,980 - $3,000,000-$10,113,992=$15,170,988
Profit for 1% increase=$15,170,988- $14,894,982=$276,006
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.