Investor Presentaiton

☐ Principles in Supply Chain Analysis & Design cont'd More Than Cost is at Stake Supply chain leaders trade off reliability, responsiveness, flexibility, and cost to locate facilities Companies design supply chains to fulfill customer requirements Different markets can require vastly different supply chain strategies Locations of production/inventory relative to demand are optimized through network analysis " Supply Chain Drivers Supply chain strategy is driven by analysis of: Customer requirements Heuristic and linear programming models are used to locate sites, trading off costs vs. service levels " Understanding how companies make these decisions can help drive more effective use of EDA resources Competitive market positioning and value proposition Availability of working capital Physical characteristics of demand (location, transport options, etc.) Availability of capital Other additional factors Network Analysis Showing Supply Chain Service Areas and Routes Companies build distribution networks that balance DC operating and transportation costs. The | optimal solution adds locations until the marginal cost of a new facility outstrips the transportation savings it can provide. I SEABURY MARITIME Washingt ཀཐཱཏོ Montana North akota Orega Nevada Wyoming South Dakota ado United States New Mexico Texas Baja California Sonora Chihuahua Coahuila Baja California Sur Sinaloa Durango Nuevo León Tamaulipas Misso Ma nsin ermont ngan New Yo Ne onnecticut Mi Kentucky Опо Ian ssee th na arolina am Rhod New Jersey Delaware Maryland District of Columbia 16

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