For SKUS-CBL290 & CBL 500: What is the total inventory cost savings (cycle stock and safety stock) associated with a centralized warehouse compared to the decentralized warehouses? Assume the cost of inventory is 75% of the sales price two SKUs Identified above: For a 95% service rate, what is the total safety stock inventory for each SKU under the decentralized warehouse structure? For a 95% service rate, what is the safety stock inventory for each SKU under a centralized warehouse structure? Compared to the decentralized structure, what is the percent reduction in safety stock for each SKU with the centralized structure? Page 8 9B17D007 EXHIBIT 4: CABLE SKUS AT DISTRIBUTOR SKU Average memory at Warehouse Rank B CBLS CB5 CBLIS C.13 CBL154 CELLS CRUISE C15 : 4. B B B A B Y PE ES CRL) CBL 21 CELMI (275 SKL Case Category Quantity S s 10 S 29 1 S 11 30 S 90 S 120 120 S 80 200 120 c 25 1990 S 3 S 500 C 1 NI Y D A B Average SKU Selling Price CBL130 $ CBL15 $ 8.17 CBLIS2 12.02 CBL153 $ 5.85 CBL151 $ 6.25 CBLISS 5 4.45 CBLIS $ 4.44 CBLIST 5 6,66 CBLISH $ 6.12 CBL200 S 9.6. CRI $ 3.30 CBL 261 $ 2.00 CBL 275 S 2.15 CRI20 $ 6.10 CBL291 s 7.84 CBL292 S 10.00 CR1291 $ CBL29 s 91.45 CRI 205 $ 19402 CR2 $ 2.90 CB300 $ 2.61 CRI.301 $ 2.61 CBLC $ 2.61 CBL3035 CRE $ 2.61 CBL.306 $ 2.61 CRL $ 261 CBL $ 3.91 $ 3.32 CRUSO $ 125.99 CBL SOL s 129.95 CBL600 5 1.15 CHLOE 0.00 CBLAC $ 2.39 CELNI CELA CHIN Warehouse Warehouse Warehouse Warehouse Warehouse 10 20 40 70 UN 37 101 100 TU 23 73 136 41 37 15 15 235 125 114 272 248 275 205 206 53 75 36 86 16 47 41 102 114 135 350 350 114 17 46 17 28 20 13 13 IS 18 12 12 9 24 24 17 198 93 95 258 37 307 NI 514 157 1:57 ILS 44 31 39 J 37 31 31 36 6 26 39 10 10 7 7 17 2 6 121 37 12 12 105 54 129 105 106 119 11 11 21 13 88 22 7 IS 21 6 22 9 7 70 73 73 IS 201 15 18 21 12 9 31 31 - 2 4 11 5 3 21 8 39 11 11 175 141 129 120 Warehouse 16 Warehouse 21 Warehouse Average wenge Standard were - Salini Average Standard Seling Price Monthly Sales Desistivo Muriy Sale Desitin Monthly Sales Desiation S 38 14 21 24 35 S 6.11 21 21 27 50 65 92 $ 1. 1 15 14 18 5 9 5 5.55 6 9 17 41 55 153 185 60 101 55 5 445 13 . 1 1 5 4.41 12 17 15 37 5 55 14) 125 41 26 $7 5 6.9 13 7 1 33 23) 5 5 3 s 4 4 5 5 32 2 5 5 150 3 10 5 2.15 1 5 2 1 5 5 5 13 un 39 11 19 5 7.94 58 34 13 5 10. 14 10 4 6 13 33 5 f 22 12 41 2 3 12 12 5 91.45 6 8 3 2 2 6 3 5 1942 2 4 1 1 1 5 10) 56 12 3 2) 5 2.5 79 11 24 13 41 S 5 l 5 1.5 3 7 . S 10 19 . 3 1 5 15 4 9 . 3 1 1 2.5 31 9 2 4 4 3 6 5 3 3 1 1 2 10 25 S $ 1.32 10 15 5 9 5 3.32 11 18 44 4 6 5 125.99 1 2 5 129.35 4 4 1 1 5 1.15 3 3 2 2 11 21 5 092 61 15 13 41 5 2.99 62 X 15 25 73 104 Warbie 40 Wartouse Total Average Average Standard Avenge - Standard Morby Sales Deviction Monthly Sales Desiation Monthly Sales Desiatica 12 19 ! + 53 31 17 S7 67 212 114 4 4 -47 31 31 f 1D IDI 124 10 211 1:45 205 40 2 4 14 3 41 21 9 9 41 15 131 135 TID 171 135 571 243 8 3 19 M 13 2 1 6 9 2 21 8 19 6 l II 1 1 2 36 15 12 X no 113 155 OG 643 9 12 2 3 103 55 14 10 1 23 18 19 1 2 2 61 4 : 4 23 15 3 1 ! 1 9 0 5 ! 1 4 61 61 29 fil 118 SIO 141 2 16 13 + 4 12 14 3 21 ! 5 15 IG 10 29 14 24 3 6 1) 29 30 41 4 9 00 In 11 11 12 16 20 1 1 2 2 2 1 1 2 4 4 1 1 1 1 6 4 6 i 19 52 54 23 RO 31 231 IG 194 11 101 324 316 B B CRN B B CR NI C C C B C 61 0 1 2 190 SEN CN COB CH (1) CEL) CELON CLON 2.1 CEL.SI CR) CBI C C A 4 Rank: A = high demand; B = madium demand: C = low demand; Y = discontinued SKU Category: C - commodity item; S = hard-to-find. 9 For SKUS-CBL290 & CBL 500: What is the total inventory cost savings (cycle stock and safety stock) associated with a centralized warehouse compared to the decentralized warehouses? Assume the cost of inventory is 75% of the sales price two SKUs Identified above: For a 95% service rate, what is the total safety stock inventory for each SKU under the decentralized warehouse structure? For a 95% service rate, what is the safety stock inventory for each SKU under a centralized warehouse structure? Compared to the decentralized structure, what is the percent reduction in safety stock for each SKU with the centralized structure? Page 8 9B17D007 EXHIBIT 4: CABLE SKUS AT DISTRIBUTOR SKU Average memory at Warehouse Rank B CBLS CB5 CBLIS C.13 CBL154 CELLS CRUISE C15 : 4. B B B A B Y PE ES CRL) CBL 21 CELMI (275 SKL Case Category Quantity S s 10 S 29 1 S 11 30 S 90 S 120 120 S 80 200 120 c 25 1990 S 3 S 500 C 1 NI Y D A B Average SKU Selling Price CBL130 $ CBL15 $ 8.17 CBLIS2 12.02 CBL153 $ 5.85 CBL151 $ 6.25 CBLISS 5 4.45 CBLIS $ 4.44 CBLIST 5 6,66 CBLISH $ 6.12 CBL200 S 9.6. CRI $ 3.30 CBL 261 $ 2.00 CBL 275 S 2.15 CRI20 $ 6.10 CBL291 s 7.84 CBL292 S 10.00 CR1291 $ CBL29 s 91.45 CRI 205 $ 19402 CR2 $ 2.90 CB300 $ 2.61 CRI.301 $ 2.61 CBLC $ 2.61 CBL3035 CRE $ 2.61 CBL.306 $ 2.61 CRL $ 261 CBL $ 3.91 $ 3.32 CRUSO $ 125.99 CBL SOL s 129.95 CBL600 5 1.15 CHLOE 0.00 CBLAC $ 2.39 CELNI CELA CHIN Warehouse Warehouse Warehouse Warehouse Warehouse 10 20 40 70 UN 37 101 100 TU 23 73 136 41 37 15 15 235 125 114 272 248 275 205 206 53 75 36 86 16 47 41 102 114 135 350 350 114 17 46 17 28 20 13 13 IS 18 12 12 9 24 24 17 198 93 95 258 37 307 NI 514 157 1:57 ILS 44 31 39 J 37 31 31 36 6 26 39 10 10 7 7 17 2 6 121 37 12 12 105 54 129 105 106 119 11 11 21 13 88 22 7 IS 21 6 22 9 7 70 73 73 IS 201 15 18 21 12 9 31 31 - 2 4 11 5 3 21 8 39 11 11 175 141 129 120 Warehouse 16 Warehouse 21 Warehouse Average wenge Standard were - Salini Average Standard Seling Price Monthly Sales Desistivo Muriy Sale Desitin Monthly Sales Desiation S 38 14 21 24 35 S 6.11 21 21 27 50 65 92 $ 1. 1 15 14 18 5 9 5 5.55 6 9 17 41 55 153 185 60 101 55 5 445 13 . 1 1 5 4.41 12 17 15 37 5 55 14) 125 41 26 $7 5 6.9 13 7 1 33 23) 5 5 3 s 4 4 5 5 32 2 5 5 150 3 10 5 2.15 1 5 2 1 5 5 5 13 un 39 11 19 5 7.94 58 34 13 5 10. 14 10 4 6 13 33 5 f 22 12 41 2 3 12 12 5 91.45 6 8 3 2 2 6 3 5 1942 2 4 1 1 1 5 10) 56 12 3 2) 5 2.5 79 11 24 13 41 S 5 l 5 1.5 3 7 . S 10 19 . 3 1 5 15 4 9 . 3 1 1 2.5 31 9 2 4 4 3 6 5 3 3 1 1 2 10 25 S $ 1.32 10 15 5 9 5 3.32 11 18 44 4 6 5 125.99 1 2 5 129.35 4 4 1 1 5 1.15 3 3 2 2 11 21 5 092 61 15 13 41 5 2.99 62 X 15 25 73 104 Warbie 40 Wartouse Total Average Average Standard Avenge - Standard Morby Sales Deviction Monthly Sales Desiation Monthly Sales Desiatica 12 19 ! + 53 31 17 S7 67 212 114 4 4 -47 31 31 f 1D IDI 124 10 211 1:45 205 40 2 4 14 3 41 21 9 9 41 15 131 135 TID 171 135 571 243 8 3 19 M 13 2 1 6 9 2 21 8 19 6 l II 1 1 2 36 15 12 X no 113 155 OG 643 9 12 2 3 103 55 14 10 1 23 18 19 1 2 2 61 4 : 4 23 15 3 1 ! 1 9 0 5 ! 1 4 61 61 29 fil 118 SIO 141 2 16 13 + 4 12 14 3 21 ! 5 15 IG 10 29 14 24 3 6 1) 29 30 41 4 9 00 In 11 11 12 16 20 1 1 2 2 2 1 1 2 4 4 1 1 1 1 6 4 6 i 19 52 54 23 RO 31 231 IG 194 11 101 324 316 B B CRN B B CR NI C C C B C 61 0 1 2 190 SEN CN COB CH (1) CEL) CELON CLON 2.1 CEL.SI CR) CBI C C A 4 Rank: A = high demand; B = madium demand: C = low demand; Y = discontinued SKU Category: C - commodity item; S = hard-to-find. 9