projectcalcs key

8/10/2019 ProjectCalcs KEY

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This tab automatically calculates the cost of the new warehouse option according to the sourcingdecision given in the Solution tab by considering the number of pallets in each week.

This tab automatically calculates the number of pallets for each SKU in each week according tothe sourcing decision given in the Solution tab.

Contents

1. Solution (and decision tool)

2. Appendix data

3. Appendix categories

4. Appendix parameters

5. 3PL parameters

6. 3PL cost calculations

This tab provides the three cost calculations (storage cost, receiving cost, and shipping cost) forthe 3PL option.

9. Warehouse cost calculations

This tab contains the cost structure of the 3PL provider.

This section provides a brief overview of the entire spreadsheet and an instruction on howto use the interactive decision tool in the Solution tab.

This tab presents the number of SKUs in each category.

This tab contains all parameters needed for cost calculations of each sourcing option.

KEY Electronics - Sourcing and Warehouse AnalysisT. Kraft, Y.T. Chung, F. Erhun; Stanford University

Instruction for the Interactive decision tool

This tab provides the average annual procurement cost calculations for each SKU. The readercan try the interactive decision tool to check the total costs including the average annualprocurement cost and the warehousing cost.

This tab contains all basic information regarding each SKU category such as physicalspecifications, profit margins, duties, and demand distributions.

This tab contains all information regarding the cost structure of the existing warehouse. Thereader can estimate the cost sturcture of the new warehouse option from this information.

7. Frequency calculations

8. Warehouse parameters


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The interactive decision tool is found on the Solution tab, from the column CJ to CQ. Please notethat the blue-colored cells named "decision variable cells" (CK3:CL12, and CQ3) are the onlyinput cells. All other cells (including cells in other tabs) will be adjusted automatically based on theuser's input. The user can input "1" to choose the option and "0" not to choose the option.

According to the user's input, all other cells will be updated and the total cost for the given optionwill appear in cell CR13. The minimum cost sourcing strategy can be found in column CH.


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SKU KM Description Item Current SourceWeight

(lbs)2300105 BATERIA KY357 Batteries KEY 0.11609313 T.V. 25" SANYO TV Local 8.822780211 CONECTOR F-59 Cable/Connector KEY 0.011709786 TEL CEL SONY Z200 Cellphone KEY 0.66300612 PURIFICADOR DE AIRE Air Purifier KEY 8.081309034 KARAOKE JXOK5 Karaoke Machine Local 16.56509036 CALC.CIENT.SC OL153 Calculator Local 1.236109015 REGULADOR KOBLENZ BP1000 Surge Protector Local 0.964309113 TELEFONO ALAMBRICO GONDOL Telephone Local 1.502000234 RADIO FM YB400PE Radio KEY 3


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s a oca estBatteries 0 1 0 Asia

TV 0 0 1 Local Ctsable/Connect 0 0 1 Local Cts

Cellphone 0 0 1 Local Cts Air Purifier 1 0 0 US

araoke Machi 0 0 1 Local CtsCalculator 0 0 1 Local Cts

urge Protecto 1 0 0 USTelephone 1 0 0 US

Radio 1 0 0 USTotal Sourcin

Decision Variable Cells

ourc ng + are ouse ost


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Volume(Cubic ft)

Units/Pallet

Sales Price($)

ocaBase UnitCost ($)

Base UnitCost ($)

s aBase UnitCost ($) Duty

Service level(Type 1)

0.016 1,000 1.33 0.80 0.41 0.40 18% 0.982.08 8 176.94 129.17 116.78 115.01 30% 0.98

0.043 350 1.18 0.66 0.38 0.37 10% 0.90.13 128 142.22 128.00 108.09 106.67 35% 0.981.36 8 166.67 116.67 93.33 91.67 15% 0.953.5 4 138.89 108.33 75.00 73.61 50% 0.950.2 80 16.28 10.42 8.46 8.30 25% 0.95

0.08 200 20.51 13.33 8.41 8.21 13% 0.950.14 115 9.49 6.83 4.46 4.37 23% 0.980.16 100 174.39 148.23 120.33 118.58 20% 0.95


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rocureme#REF! 0

#REF!#REF!#REF!#REF!#REF! 1#REF!#REF!#REF!#REF! TOTAL#REF! Total Whse #REF! #REF!

Fixed Cost for WHSE #REF!Variable Cost for WHSE #REF!TOTAL #REF!

3PL Storage #REF!3PL Receiving #REF!

3PL Shipping #REF!

TOTAL #REF!

3PL #REF!

are ous ng ost

WHSE #REF!


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Mean Demand(Month)

Std Dev ofDemand (Month)

Unit CostsUS*Duty

Unit Costs Asia *Duty

Unit Costs (US) +Labeling (US)

1,800 250 0.48 0.47 0.62115 95 151.81 149.51 151.95675 85 0.42 0.41 0.56152 69 145.92 144.00 146.06125 45 107.33 105.42 107.4730 16 112.50 110.42 112.64

108 65 10.58 10.38 10.72540 270 9.50 9.28 9.64910 334 5.49 5.38 5.6338 17 144.40 142.30 144.54

Duty & LabelingProjected 2012


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EOQ (Asia) T (Local) - Mos T (US) - Mos T (Asia) - MosLead Time

Demand (Local)2014 0.14 0.64 1.12 178

30 0.04 0.16 0.26 111257 0.25 1.11 1.86 67

36 0.04 0.14 0.23 1537 0.04 0.19 0.30 1217 0.09 0.37 0.58 3

109 0.15 0.63 1.01 11261 0.06 0.30 0.48 53433 0.07 0.30 0.48 9018 0.07 0.29 0.47 4

AsiaUS

Local

T


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Lead TimeStdDev (Local)

Lead TimeDemand (US)

Lead TimeStdDev (US)

Lead TimeDemand (Asia)

Lead TimeStdDev (Asia)

79 828 186 3847 55230 53 65 246 14127 311 64 1442 19922 70 47 325 10714 58 31 267 725 14 11 64 24

20 50 44 231 9885 249 185 1154 414

105 419 230 1945 5315 17 12 81 26

LT (Days) LT (Mos) LT StdDev (Days) LT StdDev (Mos)65 2.137 7 0.2314 0.46 1.3 0.043 0.10 - -

Lead Time


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R (Local) R (US) R (Asia)Safety Stock

(Local) Safety Stock (US)339 1211 4981 161 38273 186 536 61 133

101 393 1697 34 8359 167 544 45 9736 109 385 23 5111 32 104 8 1844 123 392 34 73

193 552 1835 139 304305 891 3036 215 47213 37 125 9 19

Reorder Point (R) Safety Stock


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Safety Stock(Asia) Hold Cost (Local) Hold Cost (US) Hold Cost (Asia)

Order Cost(Local)

1135 $57 $152 $287 $17,280290 $2,058 $5,442 $11,821 $178,255255 $19 $64 $114 $5,346219 $1,515 $3,949 $8,557 $233,472118 $756 $1,699 $3,732 $175,00540 $261 $675 $1,460 $38,999

162 $109 $291 $592 $13,504681 $520 $939 $1,942 $86,378

1091 $419 $886 $1,917 $74,58443 $374 $895 $1,870 $67,593

Hold Cost


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Order Cost (US) Order Cost (Asia)Setup Cost

(Local) Setup Cost (US) Setup Cost (Asia)$13,776 $11,595 $25 $91 $135

$211,401 $213,700 $79 $358 $580$4,531 $4,182 $14 $52 $81

$266,569 $263,318 $90 $402 $644$162,901 $163,797 $78 $315 $508$41,382 $43,052 $37 $159 $260$14,110 $14,195 $22 $93 $150$63,359 $62,056 $55 $196 $313$63,727 $64,014 $51 $197 $318$66,100 $65,210 $49 $200 $320

Order Cost Setup Cost


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Loss Fxn

L(z)Penalty Cost

(Local)Penalty Cost

(US)Penalty Cost

(Asia)Total Cost Cts

(Local)0.0073 $6 $11 $27 $17,3670.0073 $354 $909 $2,010 $180,7450.0473 $2 $4 $12 $5,3810.0073 $255 $634 $1,415 $235,3320.0209 $172 $352 $819 $176,0120.0209 $57 $131 $305 $39,3530.0209 $22 $50 $112 $13,6570.0209 $118 $189 $414 $87,0710.0073 $66 $123 $286 $75,1190.0209 $83 $176 $394 $68,098

Penalty Cost


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Total Cost Cts(US)

Total Cost Cts(Asia)

T (Local) -Optimal T Adj (US) T Adj (Asia)

$15,031 $13,045 0.14 0.46 0.92$219,110 $229,111 0.04 0.46 0.92

$5,652 $5,390 0.25 0.92 1.85$272,554 $274,934 0.04 0.46 0.92$166,266 $169,856 0.04 0.46 0.92$43,347 $46,077 0.09 0.46 0.92$15,544 $16,048 0.15 0.46 0.92$65,683 $65,724 0.06 0.46 0.92$65,932 $67,534 0.07 0.46 0.92$68,371 $68,794 0.07 0.46 0.92

Order Intervals Weeks MosUS 2.0 0.46

Asia 4.0 0.92

US Asia0.46 0.920.92 1.851.38 2.771.85 3.692.31 4.622.77 5.543.23 6.463.69 7.38

4.15 8.314.62 9.23

Total Cost (Q,R) T


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EOQ (US) EOQ(Asia)Lead Time

StdDev (Local)Lead Time

StdDev (US)Lead Time

StdDev (Asia)831 1662 121 252 60253 106 36 91 168

623 1246 50 104 23070 140 25 67 12658 115 17 44 8414 28 7 15 2950 100 33 63 116

249 498 108 260 488420 840 135 323 62118 35 7 16 31

EOQ Lead Time


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Safety Stock Prd(Local)

Safety Stock Prd(US)

Safety Stock Prd(Asia) Hold Cost (Local) Hold Cost (US)

249.0 517.7 1237.1 $74 $14973.3 187.6 345.6 $2,446 $8,20163.9 133.3 294.8 $24 $6252.2 136.7 258.1 $1,761 $6,27627.8 71.6 137.9 $891 $2,72711.5 25.4 47.4 $347 $92853.8 102.9 191.4 $162 $348

177.5 428.1 803.3 $646 $1,351278.1 663.4 1274.7 $526 $1,27411.5 27.0 51.0 $473 $1,296

US Asia2,177 6,745294 698

1,067 2,983277 723187 52053 139

202 522926 2,456

1,502 4,05962 167

Hold CostSafety Stock

S*


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Hold Cost (Asia)Order Cost

(Local) Order Cost (US) Order Cost (Asia)Setup Cost

(Local)$278 $17,280 $13,776 $11,595 $25

$15,434 $178,255 $211,401 $213,700 $79$118 $5,346 $4,531 $4,182 $14

$11,847 $233,472 $266,569 $263,318 $90$5,338 $175,005 $162,901 $163,797 $78$1,832 $38,999 $41,382 $43,052 $37$661 $13,504 $14,110 $14,195 $22

$2,520 $86,378 $63,359 $62,056 $55$2,484 $74,584 $63,727 $64,014 $51$2,450 $67,593 $66,100 $65,210 $49

Order Cost


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Setup Cost (US) Setup Cost (Asia)Penalty Cost

(Local)Penalty Cost

(US)Penalty Cost

(Asia)$126 $164 $9 $15 $30$126 $164 $423 $1,284 $2,392$63 $82 $4 $7 $14

$126 $164 $299 $893 $1,665$126 $164 $206 $494 $956$126 $164 $79 $185 $360$126 $164 $36 $71 $133$126 $164 $150 $266 $489$126 $164 $85 $173 $334$126 $164 $108 $248 $463

Setup Cost Penalty Cost


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(Continuous)

Total Cost Prd(Local)

Total Cost Prd(US)

Total Cost Prd(Asia)

Total Cost Cts(Local)

Recommended(Sourcing only)

$869,395 $753,318 $653,294 $868,360 Asia$1,812,030 $2,220,120 $2,326,905 $1,807,450 Local Cts$285,553 $300,162 $286,034 $285,198 Local Cts

$4,712,452 $5,497,302 $5,559,876 $4,706,631 Local Cts$2,642,703 $2,508,729 $2,568,831 $2,640,177 US$591,928 $654,316 $696,120 $590,301 Local Cts$205,853 $234,830 $242,283 $204,862 Local Cts

$8,723,015 $6,610,271 $6,622,806 $8,707,125 US$902,947 $795,607 $815,946 $901,433 US$682,223 $687,702 $692,865 $680,983 Local Cts

(Continuous) Total$17,388 $15,066 $13,066 $17,367 $13,066

$181,203 $222,012 $232,691 $180,745 $180,745$5,388 $5,663 $5,397 $5,381 $5,381

$235,623 $274,865 $277,994 $235,332 $235,332$176,180 $167,249 $171,255 $176,012 $167,249$39,462 $43,621 $46,408 $39,353 $39,353$13,724 $15,655 $16,152 $13,657 $13,657$87,230 $66,103 $66,228 $87,071 $66,103$75,246 $66,301 $67,996 $75,119 $66,301$68,222 $68,770 $69,287 $68,098 $68,098

Recomm

Single SKU Cost (Periodic)

Total Category Cost (Periodic)


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Sourcing Cost (w/owarehouse) SKU US Asia Local

$653,294 Batteries 0 1 0$1,807,450 TV 0 0 1$285,198 Cable/Connector 0 0 1

$4,706,631 Cellphone 0 0 1$2,508,729 Air Purifier 1 0 0$590,301 Karaoke Machine 0 0 1$204,862 Calculator 0 0 1

$6,610,271 Surge Protector 1 0 0$795,607 Telephone 1 0 0$680,983 Radio 0 0 1

$18,843,326Decision Variable Cells

Min Unit Cost Unit Cost Solution0.58 Asia

129.17 Local0.64 Asia

128.00 Local109.27 US108.33 Local10.42 Local9.73 Asia5.93 US

145.20 Asia

Sourcing + Wareendations


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Best OptionProcurement

Cost Asia $653,294 1

Local Cts $1,807,450Local Cts $285,198Local Cts $4,706,631

US $2,508,729Local Cts $590,301 0Local Cts $204,862

US $6,610,271US $795,607

Local Cts $680,983 TOTALTotal Sourcing $18,843,326 Total Whse $378,107 $19,221,432

WHSE Avg Utiliz 49%

Fixed Cost for WHSE $251,400Variable Cost for WHSE $126,707

TOTAL $378,107

3PL Storage $186,9273PL Receiving $89,889

3PL Shipping $102,375TOTAL $379,190

WHSE

3PL $0

house Cost

$378,107

Warehousing Cost


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T Min Max Avg

a etsreceived per

year

urrentSourcing

Projected Cost0.92 83 145 114 1,092 $753,3180.04 83 83 83 1,974 $1,807,4500.25 7 30 18 1,274 $300,1620.04 8 8 8 323 $5,497,3020.46 188 242 215 2,834 $2,508,7290.09 41 41 41 1,452 $590,3010.15 9 9 9 312 $204,8620.46 276 339 308 3,250 $8,707,1250.46 91 113 102 1,144 $901,4330.07 1 1 1 174 $687,702

787 1,012 900 13,829 $21,958,384

Pallets on-hand


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e ecteSourcing

Projected Cost$653,294

$1,807,450$285,198

$4,706,631$2,508,729$590,301$204,862

$6,610,271$795,607$680,983

$18,843,326 $3,115,059

Savings fromsourcing


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SKU KM Description ItemCurrentSource

Weight(lbs)

Volume(Cubic ft)

2300105 BATERIA KY357 Batteries KEY 0.10 0.0161609313 T.V. 25" SANYO TV Local 8.82 2.082780211 CONECTOR F-59 Cable/Connector KEY 0.01 0.043

1709786 TEL CEL SONY Z200 Cellphone KEY 0.60 0.136300612 PURIFICADOR DE AIRE Air Purifier KEY 8.08 1.361309034 KARAOKE JXOK5 Karaoke Machine Local 16.50 3.506509036 CALC.CIENT.SC OL153 Calculator Local 1.23 0.206109015 REGULADOR KOBLENZ BP1000 Surge Protector Local 0.96 0.084309113 TELEFONO ALAMBRICO GONDOL Telephone Local 1.50 0.142000234 RADIO FM YB400PE Radio KEY 3.00 0.16


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Units/Pallet

SalesPrice ($)

ocaBase UnitCost ($)

Base UnitCost ($)

s aBase UnitCost ($) Duty

erv ceLevel

(Type 1)

eanDemand(Month)

t ev oDemand(Month)

1,000 1.33 0.80 0.41 0.40 18% 0.98 1,800 2508 176.94 129.17 116.78 115.01 30% 0.98 115 95

350 1.18 0.66 0.38 0.37 10% 0.90 675 85

128 142.22 128.00 108.09 106.67 35% 0.98 152 698 166.67 116.67 93.33 91.67 15% 0.95 125 454 138.89 108.33 75.00 73.61 50% 0.95 30 16

80 16.28 10.42 8.46 8.30 25% 0.95 108 65200 20.51 13.33 8.41 8.21 13% 0.95 540 270115 9.49 6.83 4.46 4.37 23% 0.98 910 334100 174.39 148.23 120.33 118.58 20% 0.95 38 17

Projected 2012


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SKU Category 1 Description Number of SKUs SKU Category (re-order)13 Music 15 230010516 TV, DVD 10 160931317 Cell phones 20 278021120 Antennas, Short-wave radios 10 170978623 Batteries 50 630061227 Fuses, adapters 53 130903443 Telephones 12 650903661 Surge protectors 100 610901563 Gadgets 15 430911365 Calculators 15 2000234

Total 300 Total1 SKU Category = First two digits of SKU number


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Number of SKUs50105320151515

1001210

300


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Annual Holding Cost Interest Rate 25.00% Asia Asia (Std. Deviation)OKC

$/Cubic ft $2.05 OKC (Std. Deviation)Local

$/lb (OKC to Border) $0.05$/lb (Border to Mexico City)$/lb (Manzanillo to Mexico City)

Mexico Shipping

General Lead Times/Replenishment (Da

Ocean Freight

US Shipping


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65 Asia $12.607 US $4.86

14 Local $0.281.33

Cost per unit (Asia) $0.02Cost per unit (OKC) $0.14

$0.09$0.12

Order Costs (per SKU)

Labeling

ys)


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Description ValueReceiving cost/pallet 1 $6.50Shipping cost/replenishment 2 $11.25

Avg. orders per week/per store 2.5

Storage cost/pallet per week 3

Pallets on-hand (x)x < 1000 $4.001000 x < 1200 $2.75 1000 $4,0001200 x < 1400 $1.50 1200 $4,5501400 x $0.75 1400 $4,850

1 includes cost to receive and putaway pallets2 includes cost to pick, prep, and ship a replenishment (i.e., a store order)

3 weekly inventory snap-shot taken on Friday

3PL Pricing

Used in formulas

Incremental quantitydiscount


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W eek 1 2 3 4 5 6 7 8

Cost $4,032 $3,316 $3,881 $3,150 $4,032 $3,316 $3,881 $3,150Cost_H $4,047 $3,316 $3,881 $3,150 $4,047 $3,316 $3,881 $3,150

Cost_M2 $4,032 $3,530 $3,918 $3,416 $4,032 $3,530 $3,918 $3,416Cost_M1 $4,268 $3,994 $4,205 $3,931 $4,268 $3,994 $4,205 $3,931Cost_L $4,559 $4,422 $4,528 $4,391 $4,559 $4,422 $4,528 $4,391

Storage Cost $186,927

SKU Source

Weeksbetweenreplens

Receiptsper year Q

Units/Pallet

a etsReceipt

(SKUCategory)

Palletsreceivedper year

2300105 Asia 4.00 13 1662 1000 84 1,0921609313 Local Cts 0.18 282 5 8 7 1,9742780211 Local Cts 1.06 49 166 350 26 1,2741709786 Local Cts 0.16 323 6 128 1 3236300612 US 2.00 26 58 8 109 2,8341309034 Local Cts 0.39 132 3 4 11 1,4526509036 Local Cts 0.67 78 17 80 4 3126109015 US 2.00 26 249 200 125 3,2504309113 US 2.00 26 420 115 44 1,1442000234 Local Cts 0.30 174 3 100 1 174

Total pallets received 13,829Cost/Pallet $6.50

Receiving Cost $89,889

70 Storesx 2.5 Replen/wk/storex 52 weeks/year

9100 Replens/yr x $11.25 Cost/Replen

$102,375 Shipping Cost

Storage $186,927Receiving $89,889Shipping $102,375

Total Cost $379,190

3PL Cost

3PL Storage Cost Calculations

3PL Receiving Cost Calculations

3PL Shipping Cost Calculations


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9 10 11 12 13 14 15 16 17

$4,032 $3,316 $3,881 $3,150 $4,032 $3,316 $3,881 $3,150 $4,032$4,047 $3,316 $3,881 $3,150 $4,047 $3,316 $3,881 $3,150 $4,047$4,032 $3,530 $3,918 $3,416 $4,032 $3,530 $3,918 $3,416 $4,032$4,268 $3,994 $4,205 $3,931 $4,268 $3,994 $4,205 $3,931 $4,268$4,559 $4,422 $4,528 $4,391 $4,559 $4,422 $4,528 $4,391 $4,559


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18 19 20 21 22 23 24 25 26

$3,316 $3,881 $3,150 $4,032 $3,316 $3,881 $3,150 $4,032 $3,316$3,316 $3,881 $3,150 $4,047 $3,316 $3,881 $3,150 $4,047 $3,316$3,530 $3,918 $3,416 $4,032 $3,530 $3,918 $3,416 $4,032 $3,530$3,994 $4,205 $3,931 $4,268 $3,994 $4,205 $3,931 $4,268 $3,994$4,422 $4,528 $4,391 $4,559 $4,422 $4,528 $4,391 $4,559 $4,422


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27 28 29 30 31 32 33 34 35

$3,881 $3,150 $4,032 $3,316 $3,881 $3,150 $4,032 $3,316 $3,881$3,881 $3,150 $4,047 $3,316 $3,881 $3,150 $4,047 $3,316 $3,881$3,918 $3,416 $4,032 $3,530 $3,918 $3,416 $4,032 $3,530 $3,918$4,205 $3,931 $4,268 $3,994 $4,205 $3,931 $4,268 $3,994 $4,205$4,528 $4,391 $4,559 $4,422 $4,528 $4,391 $4,559 $4,422 $4,528


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36 37 38 39 40 41 42 43 44

$3,150 $4,032 $3,316 $3,881 $3,150 $4,032 $3,316 $3,881 $3,150$3,150 $4,047 $3,316 $3,881 $3,150 $4,047 $3,316 $3,881 $3,150$3,416 $4,032 $3,530 $3,918 $3,416 $4,032 $3,530 $3,918 $3,416$3,931 $4,268 $3,994 $4,205 $3,931 $4,268 $3,994 $4,205 $3,931$4,391 $4,559 $4,422 $4,528 $4,391 $4,559 $4,422 $4,528 $4,391


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45 46 47 48 49 50 51 52

$4,032 $3,316 $3,881 $3,150 $4,032 $3,316 $3,881 $3,150$4,047 $3,316 $3,881 $3,150 $4,047 $3,316 $3,881 $3,150$4,032 $3,530 $3,918 $3,416 $4,032 $3,530 $3,918 $3,416$4,268 $3,994 $4,205 $3,931 $4,268 $3,994 $4,205 $3,931$4,559 $4,422 $4,528 $4,391 $4,559 $4,422 $4,528 $4,391


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SKU Source Q SS Units/Pallet T (weeks) 1 2 32300105 Asia 1662 1237 1000 4.00 2.9 2.5 2.11609313 Local Cts 5 61 8 0.18 8.3 8.3 8.32780211 Local Cts 166 34 350 1.06 0.6 0.1 0.61709786 Local Cts 6 45 128 0.16 0.4 0.4 0.46300612 US 58 72 8 2.00 16.2 12.6 16.2

1309034 Local Cts 3 8 4 0.39 2.7 2.7 2.76509036 Local Cts 17 34 80 0.67 0.6 0.6 0.66109015 US 249 428 200 2.00 3.4 2.8 3.44309113 US 420 663 115 2.00 9.4 7.6 9.42000234 Local Cts 3 9 100 0.30 0.1 0.1 0.1

1.00 0.75 0.501.00 1.00 1.001.00 0.06 1.001.00 1.00 1.001.00 0.50 1.001.00 1.00 1.00

1.00 1.00 1.001.00 0.50 1.001.00 0.50 1.001.00 1.00 1.00


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4 5 6 7 8 9 10 11 121.7 2.9 2.5 2.1 1.7 2.9 2.5 2.1 1.78.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.30.1 0.6 0.1 0.6 0.1 0.6 0.1 0.6 0.10.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

12.6 16.2 12.6 16.2 12.6 16.2 12.6 16.2 12.6

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.70.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.62.8 3.4 2.8 3.4 2.8 3.4 2.8 3.4 2.87.6 9.4 7.6 9.4 7.6 9.4 7.6 9.4 7.60.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.25 1.00 0.75 0.50 0.25 1.00 0.75 0.50 0.251.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.06 1.00 0.06 1.00 0.06 1.00 0.06 1.00 0.061.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.500.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00


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13 14 15 16 17 18 19 20 212.9 2.5 2.1 1.7 2.9 2.5 2.1 1.7 2.98.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.30.6 0.1 0.6 0.1 0.6 0.1 0.6 0.1 0.60.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

16.2 12.6 16.2 12.6 16.2 12.6 16.2 12.6 16.2

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.70.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.63.4 2.8 3.4 2.8 3.4 2.8 3.4 2.8 3.49.4 7.6 9.4 7.6 9.4 7.6 9.4 7.6 9.40.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

1.00 0.75 0.50 0.25 1.00 0.75 0.50 0.25 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.06 1.00 0.06 1.00 0.06 1.00 0.06 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00


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22 23 24 25 26 27 28 29 302.5 2.1 1.7 2.9 2.5 2.1 1.7 2.9 2.58.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.30.1 0.6 0.1 0.6 0.1 0.6 0.1 0.6 0.10.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

12.6 16.2 12.6 16.2 12.6 16.2 12.6 16.2 12.6

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.70.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.62.8 3.4 2.8 3.4 2.8 3.4 2.8 3.4 2.87.6 9.4 7.6 9.4 7.6 9.4 7.6 9.4 7.60.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.75 0.50 0.25 1.00 0.75 0.50 0.25 1.00 0.751.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.06 1.00 0.06 1.00 0.06 1.00 0.06 1.00 0.061.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.500.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00


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31 32 33 34 35 36 37 38 392.1 1.7 2.9 2.5 2.1 1.7 2.9 2.5 2.18.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.30.6 0.1 0.6 0.1 0.6 0.1 0.6 0.1 0.60.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

16.2 12.6 16.2 12.6 16.2 12.6 16.2 12.6 16.2

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.70.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.63.4 2.8 3.4 2.8 3.4 2.8 3.4 2.8 3.49.4 7.6 9.4 7.6 9.4 7.6 9.4 7.6 9.40.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.50 0.25 1.00 0.75 0.50 0.25 1.00 0.75 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.06 1.00 0.06 1.00 0.06 1.00 0.06 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 0.50 1.00 0.50 1.00 0.50 1.00 0.50 1.001.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00


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40 41 42 43 44 45 46 47 481.7 2.9 2.5 2.1 1.7 2.9 2.5 2.1 1.78.3 8.3 8.3 8.3 8.3 8.3 8.3 8.3 8.30.1 0.6 0.1 0.6 0.1 0.6 0.1 0.6 0.10.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4

12.6 16.2 12.6 16.2 12.6 16.2 12.6 16.2 12.6

2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2.70.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.62.8 3.4 2.8 3.4 2.8 3.4 2.8 3.4 2.87.6 9.4 7.6 9.4 7.6 9.4 7.6 9.4 7.60.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.25 1.00 0.75 0.50 0.25 1.00 0.75 0.50 0.251.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.06 1.00 0.06 1.00 0.06 1.00 0.06 1.00 0.061.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.000.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.500.50 1.00 0.50 1.00 0.50 1.00 0.50 1.00 0.501.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00


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49 50 51 522.9 2.5 2.1 1.78.3 8.3 8.3 8.30.6 0.1 0.6 0.10.4 0.4 0.4 0.4

16.2 12.6 16.2 12.6

2.7 2.7 2.7 2.70.6 0.6 0.6 0.63.4 2.8 3.4 2.89.4 7.6 9.4 7.60.1 0.1 0.1 0.1

1.00 0.75 0.50 0.251.00 1.00 1.00 1.001.00 0.06 1.00 0.061.00 1.00 1.00 1.001.00 0.50 1.00 0.501.00 1.00 1.00 1.00

1.00 1.00 1.00 1.001.00 0.50 1.00 0.501.00 0.50 1.00 0.501.00 1.00 1.00 1.00


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Description ValueCapacity in pallets 1,850Square feet 40,000 Rent $150,000

Rent ($/Sq ft per year) $3.75 Salaries $101,400Salary per: $251,400

Manager (1 in total) $30,000Supervisor (4 in total) $12,000

Benefits (% applied to salary) 30%

Warehouse Parameters

Whse Fixed Cost


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High 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85 0.85Mid 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65Low 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45

W eek 1 2 3 4 5 6 7 8 9 10 1 1

VariableCost $3,200 $2,400 $2,350 $2,400 $1,600 $2,400 $525 $1,700 $500 $3,400 $2,350

Capacity

Utilization 90% 75% 68% 80% 55% 68% 40% 58% 42% 95% 78%

45% Capacity

65% Capacity

85% Capacity

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

30%

40%

50%

60%

70%

80%

90%

100%

1 2 3 4 5 6 7 8 9 10 11 12

C a p a c i t y U t i

l i z a t i o n

Week

Capacity Utilization Variable Cost A ril - June


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0.850.650.45 Old VC Scaled Improve

x>=.85 0.85 $3,300 $8,800 $7,480

.65


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SKU Description Best Option Review Freq2300105 BATERIA KY357 Asia 0.921609313 T.V. 25" SANYO Local Cts 0.042780211 CONECTOR F-59 Local Cts 0.251709786 TEL CEL SONY Z200 Local Cts 0.046300612 PURIFICADOR DE AIRE US 0.461309034 KARAOKE JXOK5 Local Cts 0.096509036 CALC.CIENT.SC OL153 Local Cts 0.156109015 REGULADOR KOBLENZ BP1000 US 0.464309113 TELEFONO ALAMBRICO GONDOL US 0.462000234 RADIO FM YB400PE Local Cts 0.07

Fixed Cost $251,400Variable Cost $126,707Total Warehouse Cost $378,107

0

200

400

600

800

1,000

1,200

1 8 15 22 29 36 43

P a

l l e t s

Week

Projected Pallets on-hand


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WeekSKUs/Category 1 2 3 4 5

50 145 124 103 83 14510 83 83 83 83 8353 30 7 30 7 3020 8 8 8 8 815 242 188 242 188 24215 41 41 41 41 4115 9 9 9 9 9

100 339 276 339 276 33912 113 91 113 91 11310 1 1 1 1 1

Total Pallets 1,012 829 970 787 1,012Weekly Whse VC $3,740 $1,133 $3,740 $1,133 $3,740

Utilization 55% 45% 52% 43% 55%Pallet Capacity 1,850

50


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6 7 8 9 10 11 12 13124 103 83 145 124 103 83 14583 83 83 83 83 83 83 837 30 7 30 7 30 7 308 8 8 8 8 8 8 8

188 242 188 242 188 242 188 24241 41 41 41 41 41 41 419 9 9 9 9 9 9 9

276 339 276 339 276 339 276 33991 113 91 113 91 113 91 1131 1 1 1 1 1 1 1

829 970 787 1,012 829 970 787 1,012$1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,740

45% 52% 43% 55% 45% 52% 43% 55%


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14 15 16 17 18 19 20 21 22124 103 83 145 124 103 83 145 12483 83 83 83 83 83 83 83 837 30 7 30 7 30 7 30 78 8 8 8 8 8 8 8 8

188 242 188 242 188 242 188 242 18841 41 41 41 41 41 41 41 419 9 9 9 9 9 9 9 9

276 339 276 339 276 339 276 339 27691 113 91 113 91 113 91 113 911 1 1 1 1 1 1 1 1

829 970 787 1,012 829 970 787 1,012 829$1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133

45% 52% 43% 55% 45% 52% 43% 55% 45%


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23 24 25 26 27 28 29 30 31103 83 145 124 103 83 145 124 10383 83 83 83 83 83 83 83 8330 7 30 7 30 7 30 7 308 8 8 8 8 8 8 8 8

242 188 242 188 242 188 242 188 24241 41 41 41 41 41 41 41 419 9 9 9 9 9 9 9 9

339 276 339 276 339 276 339 276 339113 91 113 91 113 91 113 91 113

1 1 1 1 1 1 1 1 1970 787 1,012 829 970 787 1,012 829 970

$3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,74052% 43% 55% 45% 52% 43% 55% 45% 52%


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32 33 34 35 36 37 38 39 4083 145 124 103 83 145 124 103 8383 83 83 83 83 83 83 83 837 30 7 30 7 30 7 30 78 8 8 8 8 8 8 8 8

188 242 188 242 188 242 188 242 18841 41 41 41 41 41 41 41 419 9 9 9 9 9 9 9 9

276 339 276 339 276 339 276 339 27691 113 91 113 91 113 91 113 911 1 1 1 1 1 1 1 1

787 1,012 829 970 787 1,012 829 970 787$1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133

43% 55% 45% 52% 43% 55% 45% 52% 43%


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41 42 43 44 45 46 47 48 49145 124 103 83 145 124 103 83 14583 83 83 83 83 83 83 83 8330 7 30 7 30 7 30 7 308 8 8 8 8 8 8 8 8

242 188 242 188 242 188 242 188 24241 41 41 41 41 41 41 41 419 9 9 9 9 9 9 9 9

339 276 339 276 339 276 339 276 339113 91 113 91 113 91 113 91 113

1 1 1 1 1 1 1 1 11,012 829 970 787 1,012 829 970 787 1,012

$3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,740 $1,133 $3,74055% 45% 52% 43% 55% 45% 52% 43% 55%


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50 51 52124 103 8383 83 837 30 78 8 8

188 242 18841 41 419 9 9

276 339 27691 113 911 1 1

829 970 787$1,133 $3,740 $1,133

45% 52% 43%

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