Answer question 12 a, b, and c on page 282. Please show your calculations. Use $175 as the Invoice Deduction per Order. Assume an organizations current service level on order fill is as follows: Current order fill = 80% Number of orders per year = 5,000 Percentage of unfilled orders back-ordered = 70% Percentage of unfilled orders cancelled = 30% Back order costs per order = $150 Lost pretax profit per cancelled order = $12,500 a. What is the lost cash flow to the seller at this 80 percent service level? b. What would be the resulting increase in cash flow if the seller improved order fill to 92 percent? c. If the seller invested $2 million to produce this increased service level, would the investment be justified financially

Supply Chain Management (10th Edition)