Erlenmeyer

Total Demand

Un fulfilled Fill Rate

Bulk Shipment Rate

Unit weight

19.56

0.01

0.4

0.25

Griffin

Formula

Exhibit 3.Average Bi-Weekly Demand for 8 warehouse*1.2

65.04 =54.2*1.2

0.01

0.4

Comments

2009 Demand increases by 20% in 2010

From Exhibit 5 Unit Weight = Pounds per case/ Units per case

0.125

When Stock out occurs, the inter-warehouse transportation costs

Total Bi-weekly cost

Total Bi-weekly cost for 8 warehouses

Total Annual Cost(A)

0.01956

0.15648

4.06848

Un fulfilled Fill Rate * Total Demand * Bulk Shipment Rate * Unit Weight

0.03252

0.26016 8*Total Bi-weekly cost

6.76416 26*Total Bi-weekly cost for 8 warehouses

From Waltham to warehouses

Total inventory to carry

Total Bi-weekly cost

Total Annual Cost(B)

136.92

13.692

355.992

455.28 Total Demand*7

22.764 Total Invetory to carry * Bulk shipment rate * weight

591.864 26*Total Bi-weekly cost

From warehouses to customer

Total Inventory to carry

Total Bi-weekly cost

Total Annual Cost(C)

156.48

520.32 Total Demand * 8

(Total Inventory to carry * weight)*

65.33838367 108.6301 ((Fixed Cost/Average shipment weight) + Weight Fee)

1698.797976 2824.382 26*Total Bi-weekly cost

Total Annual Cost(A+B+C)

2058.858456

Seven other warehouses

Relative Weight in Sale(in %)

24.04040072

Average Annual Cost

3423.01

Related Sales Revenue = (2009 units sold*Unit Price)-Total Annual Cost

Total Sales Revenue = Related Sales

Revenue of Griffin & Erinmeyer

3095.0626

75.9596 Related Sales Revenue/Total Sales Revenue

Transportation Costs for Two Warehouses at Waltham & Phoenix

Erlenmeyer

Total Bi-weekly Demand

Demand for one warehouse region

Demand for east region

Demand for central region

Demand for west region

Phoenix's Delivery Costs(A)

Waltham's Delivery Costs(B)

From Waltham to Phoenix

Total Inventory to carry

Bi-weekly Costs(C )

78.24

19.56

58.68

58.68