Question: Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and transportation, warehousing, and inventory

Using a spreadsheet computer software program, construct a supply chain finance model and calculate the profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following: Sales = $200,000,000 Transportation cost = $12,000,000 Warehousing cost = $3,000,000 Inventory carrying cost = 30% Cost of goods sold = $90,000,000 Other operating costs = $50,000,000 Average inventory = $10,000,000 Accounts receivable = $30,000,000 Cash = $15,000,000 Net fixed assets = $90,000,000 Interest = $10,000,000 Taxes 40% of (EBIT-Interest) Current liabilities = $65,000,000 Long-term liabilities = $35,000,000 Stockholders' equity = $45,000,000 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: Scenario A Transportation costs increase 20% = Warehousing costs decrease = 5% Average inventory decrease = 10% Scenario B Warehousing is outsourced with the following: Net fixed assets reduced = 20% Inventory reduced = 15% Warehousing costs = $0 Transportation costs reduced = 5% Outsourcing provider costs = $2,500,000

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