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Develop A Plan For Your Organization or Department To Move Toward Becoming or Enhancing It As A Learning Organization
Develop A Plan For Your Organization or Department To Move Toward Becoming or Enhancing It As A Learning Organization
In excel, use the following information to determine the changes in the following:
cost of service failures (including invoice discount, rehandling cost, lost sales), and
net income, and Return on Assets.
Order fill decreases from 96% to 92% with an inventory reduction of
10%.
Average price per order $125
Gross margin per order $42
Annual orders 100,000
Of orders not filled correctly
o Rectified orders 70%
With invoice discount $25
With additional handling $15
o Orders refused 30%
Warehousing cost $500,000
Other operating costs $800,000
Cash $2,000,000
Accounts receivable $1,500,000
Fixed assets $20,000,000
Tax rate 40%
Transportation cost $800,000
Average inventory $900,000
Interest cost $700,000
Inventory carrying cost 15% per year