Developing an organizations supply chain metrics


Question 1: What role should employees or customers, in general, play in developing an organization's supply chain metrics?

Question 2: Using a spreadsheet, construct a supply chain finance model and calculate the following: the profit margin; ROA; inventory turns; and transportation, warehousing, and inventory costs as a percentage of revenue for the following:

a. Sales = $200,000,000

b. Transportation cost = $12,000,000

c. Warehousing cost = $3,000,000

d. Inventory carrying cost = 30%

e. Cost of goods sold = $90,000,000

f. Other operating costs = $50,000,000

g. Average inventory = $10,000,000

h. Accounts receivable = $30,000,000

i. Cash = $15,000,000

j. Net fixed assets = $90,000,000

k. Interest = $10,000,000

l. Taxes = 40% of (EBIT - interest)

m. Current liabilities = $65,000,000

n. Long-term liabilities = $35,000,000

o. Stockholders' equity = $45,000,000

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