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One of our suppliers (TSX Innovations) just contacted me about the possibility of slower production next year due to some supply chain difficulties on their end. We rely on a component made by TSX to produce Aft. Last year, our average daily use of this component was 6.79 and the average delivery lead time was 30 days per component. I would like to retain at least 271 units of the TSX component as safety stock. What reorder point should we set for the TSX components? Louis Louis Devries Board Member, Operations |Andrews Corporation 475 units 509 units 543 units 408 units We will be ready by the end of the second quarter next year to fully close operations at our Litchcamp facility. This will complete our shift to fewer but more automated production facilities as part of our 5-year strategic plan. The Litchcamp facility comprises 15% of our workforce and our estimates show that we will retain 40% of these workers. Those who are not retained will receive severance packages that include a $7,500 payout. Could you please estimate the total separation costs associated with closing Litchcamp? Thank you. Sanjay Sanjay Singh Board Member, Operations | Andrews Corporation $285,469 $685,125 $761,250 $1,903,125 Predicting segment capacity Sanjay Singh SS Board Member, Operations Fri, 3:24 pm Allison. I just got off the phone with Michelle and she told me that the product liability lawsuit against Digby was finally settled this week. This means that Digby will have to pull Dino entirely off the market this year. This move has implications for the overall production capacity of the High End segment. I'd like to know what these consequences will be. More specifically. how much can the industry currently produce in the High End segment without Digby's product Dino? When running your calculation, you can assume that Digby will scrap all its capacity and inventory this round so it can completely write off those assets and escrow the proceeds to a lawsuit settlement fund. You only need to consider products primarily in the High End segment last year and you can ignore current inventories. Michelle also informed me that the lawsuit will not affect any other products of Digby or other companies. Best, Sanjay Sanjay Singh Board Member, Operations | Andrews Corporation 3735 units 7646 units 7696 units 3823 units Dear Allison, I'm consolidating results from our product analysis to create a summary report. Could you tell me which product sold by Baldwin eamed the highest net margin as a percentage of its sales? Thanks! Louis Louis Devries Board Member, Operations/Andrews Corporation Bam Buzz Beotle Baker Valuating excess production capacity Louis Devries LD Board Member, Operations Fri, 12:57 pm Dear Allison, My former colleague, who is the COO at Ferris, just informed me that they are looking to sell excess capacity. This usually indicates lagging sales and a company's need for additional cash. Ferris wants to sell 100 units ( x1000) of capacity used for the Foam product line. Each unit of capacity is worth $5 plus $3 per the automation rating. I also know that Ferris is offering a 37.3% discount on capacity purchase. I'm looking to assess the impact of selling this excess capacity on Ferris, as our products often compete with theirs. Could you tell me how much Ferris would receive when the capacity is sold? Sincerely, Louis Louis Devries Board Member, Operations | Andrews Corpolation $2,600,000$1,300,000$1,630,200$969,800 Production threshold estimate Sanjay Singh Board Member, Operations Fri, 11:18 am Dear Allison, I attended our industry's showcase conference last month and learned that Chester has a new design for their product Cake. It will be difficult to project what their new cost structure will be, however I want us to better understand what their break-even point is. How many units (000) of Cake must they sell to break even? Sincerely, Sanjay Sanjay Singh Board Member, Operations | Andrews Corporation 789 units 631 units 249 units 1025 units The impact of accurate production plans Allison, I'm preparing some examples for our next board meeting to illustrate how important it is to accurately align our sales forecasts to our production plans. I could use your help with this work. Andrews ended the year with excess inventory valued at $16,338,000. Had they sold all of their inventory last year at their current prices, how much more revenue could Andrews have generated? Louis Devries Board Member, Operations | Andrews Corporation $32,118,965$5,110,526$24,466,000$16,338,000 Allison, After reviewing our marketing analysis and speaking with Linda, it looks like we will need to decrease our plant utilization for Awe by 17\%. Could you let me know how many units would need to be produced next year to meet this production goal? You can ignore the impact of accounts payable on plant utilization in your estimate. -Sanjay Sanjay Singh Board Member, Operations | Andrews Corporation 592 units 835 units 975 units 696 units EAPSIM|nbox XM Andrews Annual Report Round 4-2026 Round Assets Liabilities and Owner's Equity CAPSIM|nbox XM Baldwin Annul Report Round 4-2026 Round Liabilities and Owner's Equity Chester Annul Report Round 4-2026 Round Assets Liabilities and Owner's Equity Mocembleted fipienalion APSIMInbox XM Digby Annual'Report Round 4-2026 Round Asrate Liabilities and Owner's Equity CAPSIM|nbox XM Erie Annual Report Round 4-2026 Round Liabilities and Owner's Equity Arnemuled Dririeiates Ferris Annual Report Round 4-2026 Round Liabilities and Owner's Equity