BioPharma Inc.

Year (2004 - 2009) 2009

Regional Sales and Plant Capacities

Demand Plant Capacity

Market Highcal Relax
Latin Brazil 18.0
America 7.0 7.0
Europe 15.0 12.0 Germany 45.0 Enter year in cell E1 and click "Calculate costs" Then
Asia w/o India 18.0
Japan 5.0 3.0 use solver model in sheet "solver"
Japan 7.0 8.0 Japan 10.0
Mexico 3.0 3.0 Mexico 30.0
U.S. 18.0 17.0 U.S. 22.0

Fixed and Variable Production Costs by Plant

Highcal Relax
Plant Highcal Relax Raw Raw
Fixed Fixed Fixed Material Highcal Material Relax
Cost Cost Cost Cost Production Cost Production
Plant (Million $) (Million $) (Million $) ($/kg) Cost ($/kg) ($/kg) Cost ($/kg)
Brazil 20.0 5.0 5.0 3.6 5.1 4.6 6.6
Germany 45.0 13.0 14.0 3.9 7.0 5.0 8.5
India 18.0 4.0 4.0 3.6 4.5 4.5 6.0
Japan 17.0 6.0 6.0 3.9 7.5 5.1 9.0
Mexico 30.0 6.0 6.0 3.6 5.0 4.6 6.5
U.S. 21.0 5.0 5.0 3.6 5.0 4.5 6.5

Transportation Costs ($ / kg)

Latin Europe Asia w/o Japan Mexico U.S.

From / To America Japan
Brazil 0.20 0.45 0.50 0.50 0.40 0.45
Germany 0.45 0.20 0.35 0.40 0.30 0.30
India 0.50 0.35 0.20 0.30 0.50 0.45
Japan 0.50 0.40 0.30 0.10 0.45 0.45
Mexico 0.40 0.30 0.50 0.45 0.20 0.25
U.S. 0.45 0.30 0.45 0.45 0.25 0.20

Exchange Rate History

2009 2008 2007 2006 2005 2004

Brazilian 2.70 2.90 3.50 2.30 1.95 1.81

Real
Euro 0.74 0.80 0.96 1.11 1.06 0.99
Indian 43.47 45.60 48.00 48.27 46.75 43.55
Rupee
Japanese 103.11 107.00 119.25 131.76 114.73 102.33
Yen
Mexican 11.21 11.22 10.38 9.12 9.72 9.48
Peso
U.S. 1.00 1.00 1.00 1.00 1.00 1.00
Dollar

Import Duties (%)

Latin Europe Asia w/o Japan Mexico U.S.

America Japan
30% 3% 27% 6% 35% 4%
and click "Calculate costs" Then

sheet "solver"
Calculation of Fixed and Variable Costs
Year 2009

Highcal Relax
Highcal Relax Raw Raw
Plant Fixed Fixed Fixed Material Highcal Material Relax
Cost Cost Cost Cost Production Cost Production
Plant (Million $) (Million $) (Million $) ($/kg) Cost ($/kg) ($/kg) Cost ($/kg)
Brazil 20.0 5.0 5.0 3.6 5.1 4.6 6.6
Germany 45.0 13.0 14.0 3.9 7.0 5.0 8.5
India 18.0 4.0 4.0 3.6 4.5 4.5 6.0
Japan 17.0 6.0 6.0 3.9 7.5 5.1 9.0
Mexico 30.0 6.0 6.0 3.6 5.0 4.6 6.5
U.S. 21.0 5.0 5.0 3.6 5.0 4.5 6.5

Variable Material, Production and Transportation Cost for Highcal Total Variable Cost includin

Latin Asia w/o

From / To America Europe Japan Japan Mexico U.S. From / To
Brazil 8.9 9.2 9.2 9.2 9.1 9.2 Brazil
Germany 11.4 11.1 11.3 11.3 11.2 11.2 Germany
India 8.6 8.5 8.3 8.4 8.6 8.6 India
Japan 11.9 11.8 11.7 11.5 11.9 11.9 Japan
Mexico 9.0 8.9 9.1 9.1 8.8 8.9 Mexico
U.S. 9.1 8.9 9.1 9.1 8.9 8.8 U.S.

Variable Material, Production and Transportation Cost for Relax Total Variable Cost includin

Latin Asia w/o

From / To America Europe Japan Japan Mexico U.S. From / To
Brazil 11.4 11.7 11.7 11.7 11.6 11.7 Brazil
Germany 14.0 13.7 13.9 13.9 13.8 13.8 Germany
India 11.0 10.9 10.7 10.8 11.0 11.0 India
Japan 14.6 14.5 14.4 14.2 14.6 14.6 Japan
Mexico 11.5 11.4 11.6 11.6 11.3 11.4 Mexico
U.S. 11.5 11.3 11.5 11.5 11.3 11.2 U.S.

Decision Variables

Plants Open / Shut, Lines On / Off Highcal Quantity Shipped From / To

Plant Open Highcal Relax On
(1) / Shut On (1) / (1) / Off Latin Asia w/o
Plant (0) Off (0) (1) From / To America Europe Japan
Brazil 0.0 0.0 0.0 Brazil 0.0 0.0 0.0
Germany 1.0 0.0 1.0 Germany 0.0 0.0 0.0
India 1.0 1.0 1.0 India 7.0 0.0 5.0
Japan 1.0 1.0 0.0 Japan 0.0 0.0 0.0
Mexico 1.0 1.0 1.0 Mexico 0.0 15.0 0.0
U.S. 1.0 1.0 1.0 U.S. 0.0 0.0 0.0

Total cost = $1,369.64 Relax Quantity Shipped From / To

Latin Asia w/o
From / To America Europe Japan
Brazil 0.0 0.0 0.0
Germany 7.0 12.0 0.0
India 0.0 0.0 3.0
Japan 0.0 0.0 0.0
Mexico 0.0 0.0 0.0
U.S. 0.0 0.0 0.0

Constraints
Capacity Demand
Latin Asia w/o
Plant Total CapaciHighcal Relax Demand America Europe Japan
Brazil 3.2312E-27 3.23E-27 0 Highcal 0.0 0.0 0.0
Germany 18 9.86E-32 18 Relax 0.0 0.0 0.0
India -2 1 15
Japan 8 8 0
Mexico 4.7713E-12 3 27
U.S. -4 13 5
Total Variable Cost including Duties for Highcal

Latin Asia w/o

America Europe Japan Japan Mexico U.S.
8.9 9.4 11.7 9.8 12.3 9.5
14.8 11.1 14.3 12.0 15.1 11.6
11.2 8.7 8.3 8.9 11.6 8.9
15.5 12.2 14.9 11.5 16.0 12.3
11.7 9.2 11.6 9.6 8.8 9.2
11.8 9.2 11.5 9.6 11.9 8.8

Total Variable Cost including Duties for Relax

Latin Asia w/o

America Europe Japan Japan Mexico U.S.
11.4 12.0 14.9 12.4 15.7 12.1
18.1 13.7 17.6 14.7 18.6 14.4
14.3 11.2 10.7 11.4 14.9 11.4
19.0 14.9 18.3 14.2 19.6 15.1
15.0 11.7 14.7 12.2 11.3 11.8
14.9 11.6 14.5 12.1 15.2 11.2

Japan Mexico U.S.

0.0 0.0 0.0
0.0 0.0 0.0
5.0 0.0 0.0
 2.0 0.0 0.0
0.0 3.0 9.0
0.0 0.0 9.0

Japan Mexico U.S.

0.0 0.0 0.0
8.0 0.0 0.0
0.0 0.0 0.0
0.0 0.0 0.0
0.0 3.0 0.0
0.0 0.0 17.0

Japan Mexico U.S.

0.0 0.0 0.0
0.0 0.0 0.0