Question: 7. Using the supply chain finance model developed for Problem 6, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory

7. Using the supply chain finance model developed for Problem 6, calculate the impact on profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following scenarios:

a. Transportation costs increase 15 percent.

b. Warehousing costs increase 15 percent.

c. Average inventory increases 15 percent.

d. Warehousing is outsourced with net fixed assets reduced 15 percent, inventory reduced 5 percent, warehousing cost = $0, and outsourcing provider cost = $1,200,000.

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