Question: Based off using this data are my answers correct? How do i solve if i am not correct Assume an organization's current service level on

Based off using this data are my answers correct? How do i solve if i am not correct

Based off using this data are my answers correct? How do i

solve if i am not correct Assume an organization's current service level

Assume an organization's 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 3 Back order costs per order $150 Lost pretax profit per cancelled order S12,500 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? Question 3 6 pts If the seller invested $2 million to produce this increased service level, what would be the ROI? 115.7% 192.75% 86.47% 51.88% Question 4 2 pts If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Yes No Assume an organization's 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 3 Back order costs per order $150 Lost pretax profit per cancelled order S12,500 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? Question 3 6 pts If the seller invested $2 million to produce this increased service level, what would be the ROI? 115.7% 192.75% 86.47% 51.88% Question 4 2 pts If the seller invested $2 million to produce this increased service level, would the investment be justified financially? Yes No

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