Question: Revenue per order = $ 8 , 0 0 0 7 5 0 orders / deliveries per year Net cost as a percent of revenue

Revenue per order = $8,000
750 orders/deliveries per year
Net cost as a percent of revenue =60%
80% of late deliveries redelivered; 20% canceled
Cost of redelivery = $350
Invoice deduction for late deliveries = $250
4.
What is the total lost profit or cash flow from an 85% on-time delivery rate?
5.
What is the total lost profit or cash flow from a 95% on-time delivery rate?
6.
What is the percentage reduction in total lost profit or cash flow from this 10% increase in the on-time delivery rate?

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