Question: This is everything that is given Part 1: Order Fill Rate Firm XA faces the following: - 90 units per order - 1500 orders per

This is everything that is given Part 1: Order
This is everything that is given
This is everything that is given Part 1: Order
Part 1: Order Fill Rate Firm XA faces the following: - 90 units per order - 1500 orders per year - Net cost per unit =$320 - 75% of incomplete orders backordered; 25% cancelled - Backorder costs per (backed) order =$285 - Invoice deduction per backordered order =$260 1. What is the total lost profit or cash flow at an 80% order fill rate? (Points: 20) 2. What is the total lost profit or cash flow at a 90% order fill rate? (Points: 20) 3. What is the percentage decrease in lost profit or cash flow from this 10% increase in order fill rate? (Points: 10) Part 2: On-Time Delivery Firm YB faces the following: - Revenue per order =$10,000 - 750 orders/deliveries per year - Net cost as a percent of revenue =65% - 80% of late deliveries redelivered; 20% cancelled - Cost of redelivery =$300 - Invoice deduction for redeliveries =$250 4. What is the total lost profit or cash flow from an 85% on-time delivery rate? (Points: 20) 5. What is the total lost profit or cash flow from a 95% on-time delivery rate? (Points: 20) 6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery? (Points: 10) Part 1: Order Fill Rate Firm XA faces the following: - 90 units per order - 1500 orders per year - Net cost per unit =$320 - 75% of incomplete orders backordered; 25% cancelled - Backorder costs per (backed) order =$285 - Invoice deduction per backordered order =$260 1. What is the total lost profit or cash flow at an 80% order fill rate? (Points: 20) 2. What is the total lost profit or cash flow at a 90% order fill rate? (Points: 20) 3. What is the percentage decrease in lost profit or cash flow from this 10% increase in order fill rate? (Points: 10) Part 2: On-Time Delivery Firm YB faces the following: - Revenue per order =$10,000 - 750 orders/deliveries per year - Net cost as a percent of revenue =65% - 80% of late deliveries redelivered; 20% cancelled - Cost of redelivery =$300 - Invoice deduction for redeliveries =$250 4. What is the total lost profit or cash flow from an 85% on-time delivery rate? (Points: 20) 5. What is the total lost profit or cash flow from a 95% on-time delivery rate? (Points: 20) 6. What is the percentage reduction in total lost profit or cash flow from this 10% increase in on-time delivery? (Points: 10)

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