North America Asia-Pacific Latin America Workforce Compensation & Training Europe-Africa Facility Facility Facility Facility Compensation and- - Base Wage (36 change from prior year) 0 SE 0 9E Training of Incentive Pay ($ par non-rejected pair) $1.50 $0.00 $1.50 $0.00 Production Fringe Benefits ($ peryear) $3,007 SO $1,536 SO Workers Besy Practices Training ($ per worker) $800 SO $600 Supervisory Staff (ratio of production workers to supervisors 40 to 1 0 to 1 40 to 1 0 to 1 Supervisory Compensation (>: change in salary + benefits) +1 % 0 9 North America Europe-Africa Asia-Pacific Latin America Branded Footwear Production Facility Facility Facility Facility Branded Superior Materials Percentage 40 0 Me 48 % 0 9E Production Specs Number of Models / Styles (50 to 500 models) 300 models 0 models 300 models 0 models Enhanced Styling / Features (3000s par mode) $10 SO $10 TOM / 6-Sigma Program ($ per pair produced) 51.10 $0.00 $1.10 $0.00 Projected P/Q Rating for pairs produced) 4.4* 0.0* 4.1* 0.0* Projected Reject Rate (of pairs produced) 7.4 0.0 9.4 % 0.0 Branded Pairs to be Manufactured in Year 11 (oods before rejects) 4,000 4,000 0 Anticipated Year 11 Materials Prices Standard Materials ($ par pair) $5.50 Superior Materials ($ per pain) $11.00 Asia-Pacific Latin America Production Facilities North America Europe-Africa Facility Facility Facility Facility Equipment Purchase of - New (ooos of pairs) for Footwear Equipment Refurbished (pods of pairs) 0 O Production Sale of Equipment (000s of pairs, oldest sold first) 500 500 0 Production Option A (special equipment to reduce reject rate by 50%6) No No Yes No Improvement Option B (layout revisions to reduce setup cost by 5098) No No No No Options Option C (special equipment to increase S/0 rating by 1* No No No No Option D (robotics to increase worker productivity by 5098) No No No No Construction of New / Additional Facility Space (available in Y12) 0 0 0 0 North America Europe-Africa Asia-Pacific Latin America Branded Distribution Facility Facility Facility Facility Pairs to be Shipped from to North America Warehouse 2,000 0 Facility (boos of pairs) to Europe-Africa Warehouse 1,700 DOC to Asia-Pacific Warehouse 1,924 ww.bag-online.com/users sim/ decisions/finance