ENVOY Solutions Inventory Optimization

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RightChain™ Inventory Inventory Optimization as a Service™ Powered by RightChain.ai

The World’s Most Powerful Inventory Optimization & Planning Platform and Process

1 to 4 Points Higher Gross Margin | 3 to 8 Points Higher Fill Rate | 2 to 9 Points Lower Lost Sales 14% to 31% Less Inventory| 2 to 7 Points Higher Forecast Accuracy

Strategic and Tactical AI-based Inventory Optimization, Planning and Analytics At Scale and Speed Optimization | Education | Facilitation

RightChain.ai/inventory

RightChain™ Inventory The world’s most advanced inventory optimization and planning platform and process.

RightChain™ Inventory is hosted on the RightChain.ai Platform. The platform is a globally accessible, fully scalable, CloudAI platform. The platform hosts RightChain’s three Supply Chain Optimization as a Service™ suites including RightChain™ Warehousing, RightChain™ Inventory, and RightChain™ Transportation. Each suite includes optimization applications, intelligence applications, and learning applications. The applications work in unison to form the world’s most power inventory optimization, planning, analytics and learning platform.

RightChain™ Incorporated

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RightChain™ Inventory | Inventory Optimization as a Service™ RightChain™ Inventory is a CloudAI SaaS platform hosting some of the world’s most advanced inventory optimizations, analytics, diagnostics, and education. RightChain™ Inventory is also a process and training program facilitated by RightChain’s developers, three of the world’s leading subject matter experts. RightChain™ Inventory yields 1 to 4 points higher gross margin, 3 to 8 points higher fill rates, 2 to 9 points lower lost sales, 14% to 31% less inventory, and 2 to 7 points higher forecast accuracy. Along the way, we educate subscribers in the fundamental and advanced principles of World-Class Inventory Planning & Management. Subscriptions include on-demand access to RightChain.ai, RightChain Institute, and Inventoryology.com as well as the related education sessions, workshops, and office hours.

• RightChain™ Inventory Insights • RightChain™ Finance • RightChain™ Inventory Scoreboard • RightChain™ Inventory Benchmarks • RightChain™

• RightChain™ SKUs SKU Portfolio Optimization • RightChain™ Forecasting Demand Forecast Optimization • RightChain™ Lots Lot Size Optimization • RightChain™ Turns Turn & Fill Rate Optimization • RightChain™ Deployment Inventory Deployment Optimization • RightChain™ Sourcing Sourcing Optimization • RightChain™ Planning S&OP/CPFR Optimization 3 4 5 6

• RightChain™ School of Inventory Planning and Management • RightChain™ Inventory Workshops • RightChain™ Inventory Office Hours • RightChain™ Inventory Knowledgebase • RightChain™ Inventory Community 14 15 16 17

Inventory Practices

INVENTORY LEARNING APPLICATIONS Inventory Education System & Experiences

INVENTORY INTELLIGENCE APPLICATIONS Inventory Intelligence System & Control Tower

INVENTORY OPTIMIZATION APPLICATIONS Inventory Optimization System & Digital Twins

RightChain™ Incorporated

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CloudAI SaaS PLATFORM: RightChain.ai RightChain™ Inventory is a global CloudAI SaaS platform hosting some of the world’s most advanced inventory optimizations, analytics, and education. FACILITATED PROCESS: RightChain™ Methodology RightChain™ Inventory is also a transformational and continuous optimization process facilitated by RightChain’s developers, three of the world’s leading subject matter experts. EDUCATION PROGRAM: RightChain™ Institute RightChain™ Inventory is also an education and training program teaching fundamentals, best practices, metrics, and advanced systems and analytics for SKU portfolios, forecasting, lot sizing, deployment, and planning AND skilled use of the RightChain.ai Platform. Subscriptions include on-demand access to RightChain.ai, RightChain Institute, and Inventoryology.com as well as the related education sessions, workshops, and office hours.

Contents What is RightChain™ Inventory?

RightChain™ Inventory aka Inventory Optimization as a Service™ yields 1 to 4 points higher gross margin and 5 to 12 points higher gross margin return on inventory via 3 to 8 points higher fill rates and 14% to 31% less inventory

RightChain™ Introduction RightChain™ Inventory Overview RightChain™ Inventory Applications RightChain™ Inventory Credentials RightChain™ Inventory Program RightChain™ Inventory Sample Solution

Contents CONTENTS

Supply Chain Optimization as a Service™ RightChain™ Client Customers RightChain™ Heritage RightChain.ai RightChain™ Solutions Team

Contents RightChain™ Introduction

Supply Chain Optimization as a Service™ RightChain™ employs its 30-year proven methodology, elite SaaS decision technology, and unparalleled professional services to optimize supply chain design, planning and operations for inventory, transportation, and warehousing.

30+ Years of Successful RightChain™ Implementations Optimization

AI-Based Optimization Algorithms

API Connectivity to Major WMS/TMS/ERP Optimizations, Simulations Visualizations, and Predictions

Systems and Solutions for Inventory, Transportation, Transportation, and Supply Chains

Lower Supply Chain Costs Less Supply Chain Inventory Higher Supply Chain Capital Utilization Improved Supply Chain Service

Cloud-AI Global SaaS Platform

Supply Chain Partnerships for Strategic, Tactical, and Operational Decision Making Award-Winning Business Recently Featured on PBS Information Matrix with Laurence Fishburne and FOX Business

Taught, Read, and Implemented in 8 Industries, 7 Languages, and 12 Countries

Masters and PhDs from Leading Universities with Elite Supply Chain Experience at Blue Chip Corporations

RightChain™ Incorporated

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RightChain™

OPTIMIZATION RightChain.ai Platform

Contents Optimization Education Facilitation

FACILITATION RightChain.123 Process

EDUCATION RightChain.edu Principles

RightChain™ provides client-customers with a unique and integrated bundle of supply chain optimization and planning capability…. advanced OPTIMIZATION capability via the RightChain.ai Platform, world-class education via the RightChain™ Institute, and proven optimization and planning FACILITATION via the RightChain™ Methodology and elite professional services.

RightChain™ Client Customers RightChain™ serves blue chip client customers in several major industries including aerospace, automotive, consumer products, food and beverage, healthcare, heavy industry, high tech, logistics, and telecommunications.

RightChain™ Industrials RightChain™ Tech & Health

Retail, Apparel and E-Commerce RightChain™ Retail

Transportation, Logistics, Wholesale Distribution RightChain™ Logistics

Fast Moving Consumer Goods RightChain™ CPG

High Technology and Healthcare

Aerospace, Automotive, and Heavy Industry

RightChain™ Incorporated

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RightChain™ Heritage RightChain’s heritage dates to Dr. Frazelle’s founding of The Logistics Institute and Supply ChainManagement Series at Georgia Tech in the early 1990s. RightChain continues to develop on parallel paths of client customer implementations and advanced supply chain research.

algorithms and metrics for supply chain optimization, Japan’s leadership role in logistics technology and processes Facilities Planning John Wiley

Launched joint supply chain education and consulting with TM Insight

Supply Chain Strategy McGraw-Hill Dr. Ed Frazelle helps establish The Logistics Institute Asia-Pacific at the National University of Singapore

Supply Chain Artificial Intelligence McGraw-Hill

Dr. Ed Frazelle Establishes The Logistics Institute at Georgia Tech

Supply Chain Research and Launched joint supply chain education and consulting with Mitsubishi Education Collaboration with Waseda University

Dr. Ed Frazelle’s Research Funded by the National Science Foundation to address

World Class Warehousing McGraw-Hill

Launched one of the world’s first remote supply chain optimization programs

World Class Warehousing McGraw-Hill Launched one of the world’s first integrated supply chain optimization and education platform

Inventory Strategy McGraw-Hill Launched joint supply chain education and consulting with GS1

Supply Chain Strategy McGraw-Hill Education Collaboration with Meiji University Supply Chain Research and

Launched one of the world’s first computer based logistics education programs

RightChain™ Incorporated | Supply Chains. Solved

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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain.ai RightChain.ai is a CloudAI platform hosting RightChain’s proprietary algorithms solving the most co plex problems in inventory, transportation, warehousing, and supply chain planning. Access to the optimizations is provided via data uploads and/or API connectivity. RightChain.ai customers subscribe to one or more optimization suites. RightChain™ Inventory RightChain™ Transportation RightChain™ Warehousing

RightChain.ai

Dr. Ed Frazelle is one of the world's foremost authorities on supply chain optimization, technology, strategy and operations. He is former founder of The Logistics Institute and Supply Chain Management Series at Georgia Tech and author of McGraw-Hill's Logistics Management Library. Dr. Travis Smith is a PhD in aerospace engineering from Georgia Tech. His specialty is the development and application of artificial intelligence and advanced algorithms to complex supply chain problems in design and operations.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Core Te m An award-winning s pply chain scientist, author and teacher A literal rocket scientist, PhD in aerospace engineering An award-winning decision scientist from Duke University

Dr. Ed Frazelle President and CEO

Dr. Travis Smith Chief Technology Officer

Dr. Andrew Frazelle is a PhD in decision sciences and game theory from Duke University. He is an award-winning operations researcher and specializes in supply chain operations research and analytics.

Dr. Andrew Frazelle Chief Solutions Officer

RightChain™ Professional Services Team The RightChain™ team is a family of global supply chain leaders, each experienced and credentialed with large scale supply chain transformation successes – financial, technological, and organizational – in major corporations around the world.

Mr. Mark Braddock is RightChain’s Chief Commercial Officer. He is formerly with SAP and is a computer scientist from Radford University.

Founder of The Logistics Institute at Georgia Tech, Dr. Ed Frazelle is one of the world’s foremost authorities on supply chain strategy, operations, and technology.

Mr. Steve Erbe is formerly head of supply chain analytics for the Disney Corporation where he led the supply chain optimization for retail, food & beverage, and service.

Dr. Travis Smith holds his PhD in aerospace engineering from Georgia Tech. His specialty is artificial intelligence design for supply chain systems.

Professor Masaji Nakano leads RightChain Japan where he is one of the country’s leading authorities on supply chain and logistics systems and operations.

An award-winning scientist, Dr. Andrew Frazelle holds his PhD in decision sciences from Duke University. His specialty is supply chain optimization algorithm design.

Dr. Marcus Walker is RightChain’s Director of Data Science. He is a PhD in bioengineering from Georgia Tech. His specialty is supply chain database design.

Mr. Steve Westphal is former CFO, CSCO, and CTO for Coca-Cola Consolidated where he led the successful transformation of Coke’s supply chain operations.

Professor Jim Roach is former head of Honda North America where he successfully led all sales, service, supply chain, and logistics operations.

Dr. Matt Anderson is former head of logistics efficiency and effectiveness for the United States Armed Forces.

RightChain™ Incorporated | Supply Chains. Solved.

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RightChain™ Inventory Model Inventory Optimization as a Service™ RightChain™ Inventory Features & Functionality RightChain™ Inventory Effect RightChain™ Inventory Methodology RightChain™ Inventory Use Profiles Optimization, Intelligence, and Education RightChain™ Inventory Calendar

Contents RightChain™ Inventory Overview

RightChain™ Inventory Maturity Model

Optimal inventory levels are established in live and digital collaboration with suppliers and customers. COLLABORATION

Inventory levels are optimized for all supply chain nodes and links via integrated planning and optimization with sales, finance, and operations. INTEGRATION

OPTIMIZATION

Inventory levels are optimized by determining, setting, and employing optimal set points for fill rate targets, turn rate targets, safety stock levels, lot sizes, and

Inventory levels are stable and planned with plans reasonably reflecting actual behaviors. STABILITY

Basic inventory metrics are in place including turns, days on hand, $s on hand, inventory accuracy for SKUs and locations. ITEGRITY

deployment allocations.

Inventory Digital Twin

Inventory Optimization System

RightChain™ Inventory

INVENTORY OPTIMIZATION APPLICATIONS

Inventory Optimization as a Service™

INVENTORY INTELLIGENCE APPLICATIONS

INVENTORY LEARNING APPLICATIONS

RightChain™ Inventory aka Inventory Optimization as a Service™ is a subscription inventory optimization platform and process including access to a suite of cloud-hosed inventory optimization solutions, inventory intelligence solutions, and inventory education solutions.

Inventory Intelligence System

Inventory Learning System

RightChain.ai is employed to answer the following inventory optimization questions.

Operations & Execution Users

Operations & Execution Use Case Scenarios

Planning & Strategy Use Case Scenarios

Planning & Strategy Users

Planning

& Strategy

Operations

& Execution

High level product portfolio and logistics strategy. High level inventory and service level planning and strategy development. 7

√

Which products should be discontinued and/or consolidate and centralize?

C /VP of Operations, Supply Chain, Merchandising, Sourcing, S&OP Internal and external consultants, analysts and planners for supply chain, inventory, merchandising, sourcing and S&OP

What should our inventory turn and fill rate target be for each product, in each location, for each time period to maximize gross margin and gross margin return on inventory? What forecasting algorithm maximizes our forecast accuracy for each product for each location for each time period? What production and procurement lot sizes for each product for each time period minimize total cost of ownership? What deployment of inventory across suppliers, factories, warehouses, DCs, customers, and in-transit minimizes our total supply chain cost? What internal (IBP/S&OP) and external (CPFR) collaborative planning models, processes, organizations, and systems are best fit for us? 3 4 5 2

Production scheduling, Buyer negotiating and planning Demand planning, Production scheduling, Buyer negotiating and planning

√ √

Directors and Managers of Purchasing, Production and Production Scheduling Merchants, Buyers, Planners, Forecasters

√ √

High level, long and mid-term operations, supply chain, production, capacity, sourcing, and network planning and strategy.

√ √

Purchase and production scheduling

√ √

Buyer planning, Purchase order sizing

√ √

Supply chain analysts, Inventory controllers

RightChain™ Inventory Use Profile

RightChain™ Incorporated

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Gross margin increases 1 to 4 points. Inventory Value Added™ increases 11% to 26%.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory Effect By simultaneously optimizing the SKU portfolio, applying the world’s most advanced forecasting algorithms, optimizing lot sizes and related schedules, co-optimizing SKU-level turn and fill rates, optimizing inventory deployment, and optimizing S&OP/CPFR processes, RightChain™ Inventory yields 3 to 8 points higher fill rates, 14% to 31% less inventory, 1 to 4 points higher gross margins, 5 to 12 points higher gross margin return on inventory, and 11% to 26% higher Inventory Value Added™.

GMROI increases 5 to 12 points.

Fill rate increases 3 to 8 points.

Forecast accuracy increases 3 to 8 points.

Inventory decreases 14% to 31%.

Lost sales decreases 2% to 9%.

Gross Margin %, GMROI increases Forecast Accuracy, Fill Rate, Revenue, Gross Margin increases

RightChain™ Inventory Transformational and Continuous Inventory Optimization, Planning, and Analytics

RightChain™ Planning S&OP/CPFR Optimization

RightChain™ Deployment Inventory Deployment Optimization

RightChain™ Turns Turn and Fill Rate Optimization

RightChain™ Ramps Ramp Inventory Optimization

SERVICE PERFORMANCE OF INVENTORY (Lost Sales Recovery, Fill Rate)

RightChain™ Lots Lot Size Optimization

RightChain™ Forecasting AI-based Forecasting

RightChain™ SKUs SKU Valuation and Portfolio Optimization

RightChain™ Metrics for Inventory Financial, Service, and Accuracy Metrics

RightChain™ Inventory Insights SKU & Inventory Patterns & Predictions

FINANCIAL PERFORMANCE OF INVENTORY (Gross Margin, Gross Margin %, GMROI, GMROC, Inventory Value Added, Turns, Days on Hand)

RightChain™ Incorporated

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RightChain™ Inventory | RightChain.ai/inventory

Inventory Control Tower

RightChain™ Planning & Deployment

RightChain™ Inventory Insights

Metrics Patterns Predictions Insights Practices

INVENTORY ACTIVITY & RESOURCE DATABASE

INVENTORY INTELLIGENCE SYSTEM

INVENTORY OPTIMIZATION SYSTEM

Optimizations Algorithms Methodologies

Planning & Deployment Optimization

RightChain™ Inventory Metrics

RightChain™ Turns

INVENTORY MANAGEMENT SYSTEM

RightChain™ Lots

RightChain™ SKUs

RightChain™ Inventory Practices

RightChain™ Forecasting

Turn & Fill Rate Optimization

SKU Optimization

Lot Size Optimization

Forecast Optimization

RightChain™ Incorporated

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Contents RightChain™ Inventory redential and Qualifications

We literally wrote THE BOOK on inventory. RightChain™ Inventory Client Customers RightChain™ Inventory Implementation Engagements

RightChain™ Inventory

We LITERALLY wrote THE book on inventory.

Authored by Dr. Ed Frazelle, RightChain’s founder, and published by McGraw-Hill, Inventory Strategy is the world’s authoritative resource and guide on inventory optimization, planning, best practices, metrics, analytics, and systems.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory Client Customers As a platform and process RightChain™ Inventory has been implemented in many of the world’s most prestigious organizations and successful supply chains.

RightChain™ Inventory Implementation Engagements

RightChain™ SKUs

RightChain™ Forecasting

RightChain™ Lots

RightChain™ Turns

RightChain™ Deployment

RightChain™ Planning

Company

Sector(s)

INVENTORY OPTIMIZATION CASE

60,000 SKUs. $35B annual revenue. $5B inventory investment. Abbott Diagnostics Division. $8B annual revenue. $1B inventory investment. Applied Materials Global Spares Division. $11B annual revenue. $2B inventory. BP Fabrics and Fibers. $1B annual revenue. $100M inventory investment. World’s largest HVAC. $20B annual revenue. $2B inventory investment. Coca-Cola Consolidated. $5B annual revenue. $300M inventory investment. $17B annual revenue. $2B inventory investment. $2B annual revenue. $300 inventory investment. Disney Parks and Resorts. $9B annual revenue. $1B inventory investment. Hallmark and Crayola. $5B annual revenue. $500M inventory investment.

Chemicals, CPG, Mining

Abbott

Healthcare

Applied Materials

High Tech, Spares

Textiles

Carrier

HVAC

Coca-Cola

Food & Beverage

Consumer Products

Colgate

ConvaTec

Healthcare

Apparel, F&B, Parts CPG, Specialty Retail

Disney

Hallmark

RightChain™ Incorporated

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RightChain™ Inventory Implementation Engagements

RightChain™ SKUs

RightChain™ Forecasting

RightChain™ Lots

RightChain™ Turns

RightChain™ Deployment

RightChain™ Planning

Company

Sector(s)

INVENTORY OPTIMIZATION CASE

Tens of thousands of SKUs in one of the industry’s broadest range of categories.

Home Depot

Retail, Home Improvement Automotive, Parts

Honda Manufacturing Japan Honda North America Parts

Honda

Large, global biopharmaceutical manufacturer now owned by Fischer. Large, national food and beverage manufacturer. Multi-billion dollar global health and beauty aids maker and distributor. Direct-to-consumer food and weight management company. One of the world’s preeminent consumer products companies. Multi-billion dollar national frozen foods company. Disney Parks and Resorts. $9B annual revenue. $1B inventory investment. Hallmark and Crayola. $5B annual revenue. $500M inventory investment.

Invitrogen

Biopharma

Food & Beverage

LiDestri

Cosmetics, Health & Beauty

NuSkin

Food, Weight Management

Nutrisystem

Procter & Gamble Schwan’s Foods

Consumer Products

Food & Beverage

Seagate

High Technology

Valves and Fittings

Swagelok

RightChain™ Incorporated

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Contents RightChain™ Inventory Applications

RightChain™ Inventory Applications Overview RightChain™ Inventory Applications Outline RightChain™ Inventory Optimization Applications RightChain™ Inventory Intelligence Applications RightChain™ Inventory Education Applications

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory Inventory Optimization as a Service

RightChain™ Inventory RightChain™ Inventory is a CloudAi Optimization-as-a-Service and platform for optimizing and analyzing SKU portfolios, forecasts, lot sizes, turn rates, fill rates, deployment, S&OP, IBP, and CPFR.

INVENTORY OPTIMIZATION APPLICATIONS Inventory Optimization System & Digital Twin

INVENTORY INTELLIGENCE APPLICATIONS Inventory Intelligence System & Control Tower

INVENTORY LEARNING APPLICATIONS Principles, Practices, and Platform Education, Training, and Help

RightChain™ SKUs SKU Portfolio Optimization RightChain™ Forecasting Demand Forecast Optimization RightChain™ Lots Lot Size Optimization RightChain™ Turns Turn & Fill Rate Optimization RightChain™ Deployment Deployment Optimization RightChain™ Planning Inventory Plan Optimization

SKU Rankings Order Pattern Recognition Order Line Pattern Recognition Inventory Pattern Recognition SKU, Supplier, Category, and Planner Inventory Financial, Cost, Fill and Turn Performance Computes and reports quarterly and annual supply chain and inventory financial performance. 200+ RightChain Inventory practices and gap analysis in SKU management, forecasting, lot sizing, deployment, and planning Inventory performance benchmarks in turns, days on hand, gross margin, gross margin percent, GMROI, and IVA

RightChain™ Inventory Insights RightChain™ Inventory Scoreboard

RightChain™ School of Inventory RightChain™ Inventory Workshops RightChain™ Inventory Office Hours

Evaluation, rankings, and optimization recommendations for SKUs in SKU portfolios.

Dr. Frazelle’s live and on-demand teaching on Inventory Strategy, Planning, and Management .

Advanced AI-based SKU-level forecasting yielding world-class demand forecast accuracy.

The RightChain™ team leads workshops dedicated to specific user deliverables and projects.

Production and procurement lot size and make/buy schedule optimization. SKU-level inventory turn and fill rate optimization maximizing the financial and service performance of each SKU and category. Multi-echelon inventory optimization (MEIO) determining the optimal allocation of inventory to each supply chain node and link. Internal (IBP/S&OP) and external collaborative (CPFR) inventory planning optimization.

Drs. Frazelle and Smith will hold weekly “office hours” for discussion and problem solving.

RightChain™ Finance

RightChain™ Inventory Practices RightChain™ Inventory Benchmarks

RightChain™ Inventory Knowledgebase

The world’s most comprehensive knowledgebase concentrated on inventory and supply chain planning. Interact with many of the world’s most capable inventory and supply chain professionals. Post project specific issues.

RightChain™ Inventory Community Forum RightChain™ Inventory Help/Q&As

APIs for connection to all RightChain™ Warehousing applications.

RightChain™ Inventory APIs

Comprehensive topical and technical help site.

RightChain™ Incorporated

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Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Finance Supply Chain & Inventory Finance Optimization

RightChain™ Finance™ RightChain™ Finance computes and benchmarks quarterly and annual supply chain inventory performance in gross margin, gross margin percent, GMROI, Inventory Value Added™, Supply Chain Yield™, turns, and days on hand.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ SKUs SKU Portfolio Optimization

RightChain™ SKUs RightChain™ SKUs is an AI-based optimization for honing SKU portfolios; optimizing financial, inventory, and strategic SKU performance. Key SKU performance indicators include revenue, revenue growth, gross margin, gross margin growth, gross margin percent, revenue and gross margin per unit cube and weight, gross margin return on inventory (GMROI), inventory value added (IVA), return on invested capital (ROIC), and customer contribution.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Forecasting Forecast Optimization

RightChain™ Forecasting RightChain™ Forecasting employs AI-based forecasting and proprietary algorithms and methodology to create bespoke model fit forecasting and bias mitigation uniquely to each SKU.

Minimizing forecast errors and bias, as far as we know it is the world’s most accurate forecast optimization engine.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Lots L t Size Optimization

RightChain™ Lots RightChain™ Lots minimizes the sum of inventory carrying, changeover, purchasing, and procurement costs by optimizing production and procurement lot sizes and schedules.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Turns Inventory Turn and Fill Rate Optimization

RightChain™ Turns RightChain™ Turns maximizes the financial, operational, and service performance of each SKU and product by simultaneously optimizing turn and fill rates.

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Deployment Inventory Deployment Optimization

RightChain™ Deployment RightChain™ Deployment minimizes supply chain network inventory costs by optimizing the allocation of inventory to factories, warehouses, DCs, depots, ports, stores, and in-transit links.

Paretos

Stratifications

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Insights Inventory Insights and Analytics

Portfolios

Partitions

Anomalies

Predictions

Networks

Correlations

Metrics

Analytics

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Practices Inventory Practices Assessment

Forecasting

Planning

Leadtime Management

Lot Sizing

Turn and Fill Management

Deployment

RightChain™ School of Inventory Planning & Management Based on Dr. Frazelle’s Inventory Strategy book published by McGraw-Hill and translated into many languages and taught at many of the world’s most prestigious academic institutions and corporations.

The Role of Inventory in Supply Chains and Business

Inventory Performance, Cost, & Value Measures

Inventory 101: The Fundamentals of Inventory

Inventory Activity Profiling & Pattern Recognition

SKU Valuation and Portfolio Optimization

Demand Forecast Optimization

Procurement & Production Lot Size Optimization

Sourcing Optimization

Inventory Deployment Optimization

Turn & Fill Rate Optimization

Inventory Counting and Control

IBP/S&OP/CPFR Optimization

RightChain™ Incorporated

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Multi-user access to RightChain™ Inventory Optimization as a Service Cloud-AI Platform 1. RightChain SKUs | SKU Portfolio Optimization 2. RightChain Forecasting | Forecast Optimization 3. RightChain Lots | Lot Size Optimization 4. RightChain Turns | Turn Rate Optimization 5. RightChain Deployment | Inventory Deployment Optimization 6. RightChain Planning | IBP and S&OP Optimization 7. RightChain Insights | Inventory Patterns and Profiles 8. RightChain Metrics | Inventory Performance Metrics 9. RightChain Practices | Inventory Best Practice Assessment of Current Inventory Performance, Practices, Predictions and Patterns Inventory Optimization Design for a Major BU or Supply Chain Upfront RCI Configuration and Implementation RightChain™ School of Inventory Planning Weekly Inventory Optimization Workshops

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory What’s Included?

RightChain™ Inventory | What’s Included

1. Inventory optimization heatmap connecting turn and fill rate optimization to gross margin, gross margin percent, gross margin return on inventory, and Inventory Value Added. 2. Inventory optimization database design and development. 3. SKU inventory analytics, statistics, patterns, anomalies, and visualizations. Multi-criteria SKU assortment optimization recommendations. 4. AI-based SKU forecasting and anti-bias algorithms. 5. Optimized SKU-level production and purchasing lot size optimization recommendations. 6. Optimized SKU-level inventory turn and fill rate targets

7. SKU-level optimization recommendations for safety stock, lot size, pipeline, and ramp inventory. SKU-level inventory deployment optimization recommendations for DC, warehouse, and in transit inventory allocations. Subscription to RightChain™ Inventory for up to 5 users. 10. RightChain™ Inventory training for up to 5 students. 11. Methodology and policy assessment of current inventory planning and management practices, metrics, policies, procedures, and systems. 8. 9.

RightChain™ | Supply Chains. Solved.

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SKU ID SKU Name SKU Category Supplier/Plant/Customer ID Supplier/Plant/Customer Name Unit Selling Price

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory Base Data Request

Unit Inventory Value (aka Unit Standard Cost) Production Changeover Cost 1 (if produced) Average Production Lot Size 2 (if produced) Purchase Order Cost 3 (if procured) Average Procurement Lot Size 4 (if procured) Daily, Weekly Demand 5 (units/day, week) Current Forecast Accuracy Average/Peak On Hand Inventory Level (units by loc) Current Target Fill Rate (unit fill rate) Unit Cube (cubic ft per unit or case) Network Node and Link Parameters 6

NOTES 1. Estimated cost to changeover or procure.

2. Average run size and/or a historical production run file. 3. Estimated cost to plan, place, and receive a purchase order. 4. Average procurement lot size and/or a historical procurement file. 5. For whatever time period is readily available, up to 156 weeks. 6. Leadtimes, wage rates, unit occupancy costs, storage/t’put capacity

Proposed RightChain™ Inventory Timeline and Deliverables

Month 1 Phase I: Assessment & Database Development

Month 2 Phase II: SKU Inventory Optimization

Month 3 Phase III: Network Inventory Optimization

Wk5

Wk6

Wk7

Wk8

Wk9

Wk10

Wk11

Wk12

Wk1

Wk2

Wk3

Wk4

RightChain™ Deployment

RightChain™ Planning

RightChain™ Inventory Database

RightChain™ Metrics

RightChain™ SKUs

RightChain™ Lots

Populate and execute RightChain™ SKUs. SKU Portfolio Optimization.

Develop reqts for S&OP and CPFR process, systems, and organization.

Populate and execute RightChain™ Deployment.

Populate and execute RightChain™ Metrics for Inventory.

Populate and execute RightChain™ Lots. Lot size optimization.

Populate RightChain™ Inventory database.

RightChain™ Practices Assessment RightChain™ Inventory Practices

Populate and execute RightChain™ Insights for Inventory. RightChain™ Insights

RightChain™ Forecasting

RightChain™ Sourcing

Populate and execute RightChain™ Turns. Turn and Fill Rate Optimization. RightChain™ Turns

Populate and execute RightChain™ Forecasting

Populate and execute RightChain™ Sourcing. SKU level sourcing optimization.

Phase IV: Continuous Inventory Optimization

RightChain™ | Supply Chains. Solved.

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Staffing, Resources, Fees, Expenses, and Assumptions Staffing The engagement will be directed by Dr. Ed Frazelle, RightChain’s founder and president. He will be assisted by Dr. Andrew Frazelle, RightChain’s Chief Solutions Officer; and by Dr. Travis Smith, RightChain’s Chief Technology Officer. Resumes are attached. Resources The Client Customer will be asked to assign a sponsoring executive, a project director, and a project analyst to the RightChain™ Inventory initiative. In addition, a project steering committee and executive guidance team are requested. Fees and Expenses Fees and expenses include (1) one-time and on-going optimization designs and recommendations for SKU-level inventory turn and fill rate targets and forecasts and deviations from the same, (2) recommended inventory activity database, performance metrics, and planning practices, (3) forecast bias analysis, (4) online, on-demand training in RightChain™ Inventory principles and the RightChain™ Inventory SaaS optimization platform; (5) access to RightChain™ Inventory SaaS optimization and methodology via RightChain.ai/inventory, and (6) weekly workshops devoted to inventory optimization. The fees and expenses for RightChain™ Inventory will be $15,000.00 USD per month. Assumptions 1. The success of RightChain™ Inventory depends to a large degree on the accuracy and completeness of required data. The proposed timeline assumes that a reliable, working optimization data set can be developed within the first 3 weeks of the engagement. The data set will be enhanced continuously during the course of the engagement/implementation. 2. The success and timeline of RightChain™ Inventory also depends to a large degree on the availability and participation of the project and guidance teams. The timeline assumes reasonable and active participation from related teams and individuals. The suggested participation of the team in online meetings is as follows. Executive Advisory Team (quarterly, 90 minutes), Project Advisory Team (monthly, 90 minutes), and Project Design Team (weekly, 90 minutes).

RightChain™ | Supply Chains. Solved.

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INVENTORY POLICY • Optimal Inventory Investments and Fill Rates • Optimal Inventory Turn and Fill Rates • Current Turn and Fill Rates GROSS MARGIN • Gross Margin Opportunities SKU ABCDs • Gross Margin Pareto • Revenue and Unit Gross Margin Percent FILL RATES • Current vs Optimal Fill Rates DAYS ON HAND • Current vs Optimal Days on Hand LEADTIMES • Average Leadtimes and Leadtime Variability VARIABILITIES • Leadtime and Demand Variabilities

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory ENVOY olution Sample

INVENTORY POLICY | Optimal Fill Rates and Investments

INVENTORY POLICY | Optimal Turn and Fill Rates

RightChain™ Incorporated

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INVETORY TURNS | Current vs Optimal Turn Rates

RightChain™ | Supply Chains. Solved.

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GROSS MARGIN | Gross Margin Opportunities

RightChain™ Incorporated

SKU ABCDs | Gross Margin Pareto

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SKU ABCDs | Revenue and Unit Gross Margin Percent

RightChain™ Incorporated

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LEADTIMES | Average Leadtimes and Leadtime Variability

RightChain™ Incorporated

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FILL RATES | Current vs Optimal Fill Rates

RightChain™ Incorporated

DAYS ON HAND | Current vs Optimal Days on Hand

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LOT SIZING | Lot Size Optimization Opportunities

RightChain™ Incorporated

VARIABILITIES | Leadtime and Demand Variabilities

RightChain™ Incorporated

Section 1 PriceSmart vs Domestic Warehouse Club Supply Chain Configurations RightChain™ Inventory For more information... RightChain.com

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