Construct supply chain finance model

Assignment Help Operation Management

Reference no: EM132238105

Using Microsoft Excel, construct a supply chain finance model to determine the redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following two cases:

a. On-time delivery increases from 90 percent to 95 percent with a 5 percent increase in transportation cost.

b. Order fill rate decreases from 96 percent to 92 percent with inventory reduced by 5 percent.

Selling price/order = $150/order

Gross profit/order = $35/order

Lost sales rate:

On-time delivery failure = 15%

Order fill failure = 20%

Annual orders = 200,000

Rehandling cost = $125/order

Invoice deduction/service failure = $150/order

Transportation cost = $1,000,000

Average inventory = $1,000,000

Interest cost = $1,500,000

Inventory carrying cost rate = 25%/$/yr.

Warehousing cost = $750,000

Other operating cost = $500,000

Cash = $3,000,000

Accounts receivable = $4,000,000

Fixed assets = $30,000,000

Tax rate = 40%

Stockholder’s equity = $45,000,000

Reference no: EM132238105

Questions Cloud

What is the mean absolute deviation : What is the mean absolute deviation for this set of data - What can Manuel conclude from these statistics - What can David conclude from these statistics

What was the social responsibility effort : Discuss an example of an organization in another country practicing corporate social responsibility. What was the social responsibility effort?

Make sound financial judgements : How can a board's financial literacy be evaluated and improved if necessary, so that it can make sound financial judgements?

Provides free primary healthcare services to the community : The Community Health Clinic (CHC) affiliated with the hospital provides free primary healthcare services to the community.

Construct supply chain finance model : Construct a supply chain finance model to determine redelivery/rehandling cost, lost sales, invoice deduction cost, and net income for the following two case.

Entity-relationship data model : Research and explain with your own words Chen’s entity-relationship data (ERD) model and process of normalization from first normal form to third normal form

Marketing is business and business is marketing : There is an old saying, “marketing is business and business is marketing” Explain what you think this saying means.

Concepts of brand preference with brand relevance : Compare and contrast David Aaker’s concepts of brand preference with brand relevance.

What is the most expensive activity : How much will the project cost? What is the most expensive activity?

User Account

All Pages