Hello,

Supply management 10th Edition. Chapter 13 Case Study question 6.

Using the supply chain finance model developed for Study Question 5, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios:

Q6B Net Fixed Assets Change?

Q6B Inventory Change?

Q6B Warehouse Cost?

Transportation Costs Change?

Outsourcing Provider Costs

Transportation costs increase = 20%

Warehousing costs decrease = 5%

Average inventory decrease = 10%

Warehousing is outsourced with:

Net fixed assets reduced = 20%

Inventory reduced = 15%

Warehousing costs = $0

Transportation costs reduced = 5%

Outsourcing provider costs = $2,500,000

Q6B Net Fixed Assets Change?

Q6B Inventory Change?

Q6B Warehouse Cost?

Transportation Costs Change?

Outsourcing Provider Costs