Owens and Minor Template
Owens and Minor Template
Owens and Minor Template
Cost Driver
EDI Orders
Rate
Alpha
Beta
Alpha
Beta
Volume
Volume
Volume
Volume
4.5
187.5
316.35
380
627
Non-EDI Orders
9.01
562.5
16.65
20
33
Lines
0.66
15,000
10,000
11,000
20,000
457.58
12
10
10
8.64%/Yr.
300,000
75,000
75,000
150,000
25
20
10
130
12
10
10
Deliveries
Days Sales
Outstanding
Emergency Orders
Vendor Discounts
Gross Margin
EDI Order Costs
NonEDI Order Costs
Line Costs
Shipping & Handling
Delivery Cost
Emergency Orders
Interest
Procurement
22,500
0
0
19,187
28,659
172,500 172,500 169,187 328,659
150,000 150,000 150,000 300,000
4,035
4,035
4,035
8,070
26,535
26,535
23,222
36,729
Labeling
Account
Management
Occupancy
Group Fees
Net Operating
Profit
Cost
Plus/Equivalent
Cost
Plus
You are an account manager at Owens & Minor. You have two
Activity Rates
Edi Order Cost $4.50/edi order
Non-Edi Order $9.01/non-edi order
Line Cost
$0.66/line
Emergency
Order Cost
$25/emergency order
Shipping &
$130/delivery
Handling Cost
ens & Minor. You have two customers on a stockless program. Below are eac
Customer Level Costs
Procurement
Labeling
Account Mgmt.
$1,486
1,000
991
Occupancy
1,007
Group fees
750
Below are each customers activity levels, activity rates, and customer leve
nd customer level costs. See Alpha Hospital profitability statement for Beta H
You are an account manager at Owens & Minor. You have two custo
Activity Rates
Customer Level Costs
Edi Order Cost
$4.50/edi orderProcure$1,486
Non-Edi Order Cost $9.01/non-edi oLabeling
Line Cost
$0.66/line
Delivery Cost
$457.58/deliveOccupancy
Interest Cost
8.64% per ann Group fees
Emergen
$25/emergency order
Shippin$130/delivery
991
each customers activity levels, activity rates, and customer level costs. Se
level costs. See Alpha Hospital profitability statement for Beta Hospital us
You are an account manager at Owens & Minor. You have two custo
Activity Rates
Customer Level Costs
Edi Order Cost $4.50/edi orderProcure$1,486
Non-Edi Order $9.01/non-edi oLabeling
1,000
Line Cost
$0.66/line
Account
Delivery Cost $457.58/deliveOccupancy
1,007
Interest Cost 8.64% per ann Group fees
750
Emergen
$25/emergency order
Shippin$130/delivery
You have two customers on a stockless program. Below are each custome
Level Costs
991
each customers activity levels, activity rates, and customer level costs. S
r level costs. See Alpha Hospital profitability statement for Beta Hospital u