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Increasing Order Fill Rates and Develop Strategic Profit Model

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Please see attached Case Study for Paper2Go.com and respond to the following Case Questions:
1. You are the logistics analyst at Paper2Go.com and have been asked to do the following:
a. Calculate the financial impact of increasing order fill rates to 98% from 92%.
b. Develop a strategic profit model of both the old system and the modified system that reflects the suggested adjustments.

Please cite any outside sources and fully explain (and show work for) order fill rate calculation and strategic profit model if applicable.

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Increasing Order Fill Rates and Develop Strategic Profit Model

Please see attached Case Study for Paper2Go.com and respond to the following Case Questions:
1. You are the logistics analyst at Paper2Go.com and have been asked to do the following:
a. Calculate the financial impact of increasing order fill rates to 98% from 92%.
b. Develop a strategic profit model of both the old system and the modified system that reflects the suggested adjustments.

Please cite any outside sources and fully explain (and show work for) order fill rate calculation and strategic profit model if applicable.

A. ) In order to calculate the Revenue and Profit for the order fill rate at 92%, the total number of orders 500,000 is multiplied by 92% to calculate the number of orders filled at 92% (460,000). Next, the total number of orders (500,000) is subtracted from the number of orders filled at 92% (460,000) is 40,000, which is the number of orders not filled on time. Finally, number of orders not filled on time (40,000) is multiplied by 85%, which is 34,000.

The revenue for orders filled on time is calculated by multiplying the Average Revenue per on Time Order (\$150) by the number of orders filled at 92%, which is \$69,000,000. The revenue for orders not filled on time is calculated by multiplying the Average Revenue per on Time Order (\$150) by the number of replenishment orders filled at 85% of not filled on time (34,000), which is \$5,100,000.
Papers2Go.com costs for each rehandled order is \$15. The total rehandling cost fee is calculated by multiplying the rehandled order fee (\$15) by the number of replenishment orders filled at 85% of not filled on time (34,000), which is \$510,000.

Papers2Go.com costs for each invoice reduction for rehandled orders per order is \$30. The total invoice reduction for rehandled orders fee is calculated by multiplying the Invoice reduction for rehandled order fee (\$30) by the number of replenishment orders filled at 85% of not filled on time (34,000), which is \$1,020,000.
The annual payment on the \$40,000,000 loan payment is calculated with the following formula: P = r(PV)/(1-(1+r)^-n) where P = Annual ...

Solution Summary

Determining the impact of increasing the order fill rate from 92% to 98%. Also, develop a strategic profit model to show the impact of increasing the order fill rate from 92% to 98%.

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What is your definition of Operations Management?

I am seeking your help with the following questions in order for me to write my individual paper.

1. What is your definition of Operations Management?

2. Give examples and compare/contrast strategic, tactical, and operational decisions. How do they affect a customer's operations?

3. What measures are used to evaluate supply chain efficiency? What are the inputs to those measurements?

4. Compare and Contrast the Make-to-Order, Make-to-Stock, and Hybrid process approaches described in your text.

5. Discuss the cost of quality. Compare and contrast the cost of quality with the cost of not measuring quality. Define process variation. How can reducing process variation improve quality?

6. Discuss why people at different levels of an organization have different definitions of capacity management? Discuss those definitions.

7. Discuss some sources of forecasting error. What ways are there to measure error?

8. The text states that a firm's operations strategy must be aligned and integrated with the corporate strategy. Why do you think this is the case? What do you think would happen if the two strategies were at odds?

9. What are the elements of a Work Breakdown Structure (WBS)? How can a project schedule be developed from a WBS? What is the importance of the critical path?

10. Define, compare, and contrast Pure, Functional, and Matrix structures. Who has control of project schedule and deliverables? Who has control of resources, the project manager or functional manager, or both?

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