The RightChain Guide to Supply Chain Network Optimization 18

Edward H. Frazelle, Ph.D.

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Inventory Carrying Cost $10,038,450 $10,038,450 $9,936,520 $10,038,450 $10,038,450 TOTAL LOGISTICS COST $30,633,616 $30,428,029 $29,237,032 $28,167,191 $28,258,041 Order Cutoff Time 12:00 AM 7:00 PM 7:00 PM 8:30 PM 7:00 PM Supply Chian Failure Risk High - SPF Moderate Low Lowest Moderate # of Network Airports 1 2 2 6 4 Shipment Consolidation Yes Yes No Yes Yes Weather Related Service Interruptions Moderate Worst Moderate Best Moderate Marketplace Proximity Poor Worst Good Best Best Same-Day Capability No No No Yes Yes New Facilities Required Yes Yes Yes No Yes Learning Curve Difficult Most Difficult Easiest Easy Moderate

Centralized - Single DC East Coast/West Coast Distribution Airborne Hub Best Central Current Frederick Best East Wilmington Chicago/ND GI/CA FR/CA BE/CA

Total Transportation Cost $10,468,913 $10,938,410 $10,632,484 $9,236,174 $9,208,574 Total Warehousing Cost $10,126,253 $9,451,169 $8,668,028 $8,848,997 $9,011,017

Notes 5% AB Rate Discount North Dakota Proximity to CS Less to Canada Proximity to NY

Figure 15 RightChain™ Network Optimization for a large biotech

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