What is the total lost profit or cash flow

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Reference no: EM131874147

Question: Firm A faces the following:

- 75 units per order 1500 orders per year

- Net cost per unit = $350

- 70% of incomplete orders backordered;

- 30% cancelled Backorder costs per backorder = $350

- Invoice deduction per backordered order = $325

What is the total lost profit or cash flow at a 80% order fill rate?

What is the total lost profit or cash flow at a 90% order fill rate?

What is the percentage decrease in lost profit or cash flow from this 10% increase in order fill rate?

Reference no: EM131874147

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