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