BioPharma Inc.

Year (2004 - 2009)

2009

Regional Sales and Plant Capacities

Market

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

Demand
Highcal

Plant

Capacity

Relax

Brazil
7.0
15.0

18.0

7.0
12.0 Germany

45.0
18.0

India
5.0
7.0
3.0
18.0

3.0
8.0 Japan
3.0 Mexico
17.0 U.S.

Enter year in cell E1 and click "Calculate costs" Then

use solver model in sheet "solver"

10.0
30.0
22.0

Fixed and Variable Production Costs by Plant

Plant
Fixed
Cost
Plant
(Million $)
Brazil
20.0
Germany
45.0
India
18.0
Japan
17.0
Mexico
30.0
U.S.
21.0

Highcal
Fixed
Cost
(Million $)
5.0
13.0
4.0
6.0
6.0
5.0

Relax
Fixed
Cost
(Million $)
5.0
14.0
4.0
6.0
6.0
5.0

Highcal
Raw
Material
Highcal
Cost
Production
($/kg)
Cost ($/kg)
3.6
5.1
3.9
7.0
3.6
4.5
3.9
7.5
3.6
5.0
3.6
5.0

Relax
Raw
Material
Relax
Cost
Production
($/kg)
Cost ($/kg)
4.6
6.6
5.0
8.5
4.5
6.0
5.1
9.0
4.6
6.5
4.5
6.5

Transportation Costs ($ / kg)

Latin
Europe
Asia w/o Japan
Mexico
U.S.
Japan
From / To America
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

Brazilian
Real
Euro

2009

2008

2007

2006

2005

2004

2.70

2.90

3.50

2.30

1.95

1.81

0.74

0.80

0.96

1.11

1.06

0.99

Indian
Rupee
Japanese
Yen
Mexican
Peso
U.S.
Dollar

43.47

45.60

48.00

48.27

46.75

43.55

103.11

107.00

119.25

131.76

114.73

102.33

11.21

11.22

10.38

9.12

9.72

9.48

1.00

1.00

1.00

1.00

1.00

1.00

Import Duties (%)

Latin
America
30%

Europe

Asia w/o Japan

Japan
3%

27%

Mexico
6%

35%

U.S.
4%

and click "Calculate costs" Then

sheet "solver"

Calculation of Fixed and Variable Costs

Year
2009

Plant
Brazil
Germany
India
Japan
Mexico
U.S.

Highcal
Plant Fixed Fixed
Cost
Cost
(Million $) (Million $)
20.0
5.0
45.0
13.0
18.0
4.0
17.0
6.0
30.0
6.0
21.0
5.0

Relax
Fixed
Cost
(Million $)
5.0
14.0
4.0
6.0
6.0
5.0

Highcal
Raw
Material
Highcal
Cost
Production
($/kg)
Cost ($/kg)
3.6
5.1
3.9
7.0
3.6
4.5
3.9
7.5
3.6
5.0
3.6
5.0

Relax
Raw
Material
Relax
Cost
Production
($/kg)
Cost ($/kg)
4.6
6.6
5.0
8.5
4.5
6.0
5.1
9.0
4.6
6.5
4.5
6.5

Variable Material, Production and Transportation Cost for Highcal

From / To
Brazil
Germany
India
Japan
Mexico
U.S.

Latin
America
8.9
11.4
8.6
11.9
9.0
9.1

Europe
9.2
11.1
8.5
11.8
8.9
8.9

Total Variable Cost includin

Asia w/o
Japan
Japan
Mexico
U.S.
9.2
9.2
9.1
9.2
11.3
11.3
11.2
11.2
8.3
8.4
8.6
8.6
11.7
11.5
11.9
11.9
9.1
9.1
8.8
8.9
9.1
9.1
8.9
8.8

Variable Material, Production and Transportation Cost for Relax

From / To
Brazil
Germany
India
Japan
Mexico
U.S.

From / To
Brazil
Germany
India
Japan
Mexico
U.S.

Total Variable Cost includin

Latin
Asia w/o
America
Europe
Japan
Japan
Mexico
U.S.
11.4
11.7
11.7
11.7
11.6
11.7
14.0
13.7
13.9
13.9
13.8
13.8
11.0
10.9
10.7
10.8
11.0
11.0
14.6
14.5
14.4
14.2
14.6
14.6
11.5
11.4
11.6
11.6
11.3
11.4
11.5
11.3
11.5
11.5
11.3
11.2

From / To
Brazil
Germany
India
Japan
Mexico
U.S.

Decision Variables
Plants Open / Shut, Lines On / Off
Plant Open Highcal
Relax On
(1) / Shut
On (1) /
(1) / Off
Plant
(0)
Off (0)
(1)
Brazil
0.0
0.0
0.0
Germany
1.0
0.0
1.0
India
1.0
1.0
1.0
Japan
1.0
1.0
0.0
Mexico
1.0
1.0
1.0

Highcal Quantity Shipped From / To

From / To
Brazil
Germany
India
Japan
Mexico

Latin
Asia w/o
America Europe
Japan
0.0
0.0
0.0
0.0
0.0
0.0
7.0
0.0
5.0
0.0
0.0
0.0
0.0
15.0
0.0

U.S.
Total cost =

1.0

1.0

1.0

$ 1,369.64

Constraints
Capacity
Plant
Brazil
Germany
India
Japan
Mexico
U.S.

U.S.

0.0

0.0

0.0

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

Demand
Total Capacity
Highcal
Relax
3.231E-27 3.23E-27
0
18 9.86E-32
18
-2
1
15
8
8
0
4.775E-12
3
27
-4
13
5

Demand
Highcal
Relax

Latin
Asia w/o
America Europe
Japan
0.0
0.0
0.0
0.0
0.0
0.0

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
0.0
0.0
5.0
2.0
0.0

U.S.
0.0
0.0
0.0
0.0
3.0

0.0
0.0
0.0
0.0
9.0

0.0

Japan

0.0

Mexico
0.0
8.0
0.0
0.0
0.0
0.0

Japan

U.S.
0.0
0.0
0.0
0.0
3.0
0.0

Mexico
0.0
0.0

9.0

0.0
0.0
0.0
0.0
0.0
17.0

U.S.
0.0
0.0

0.0
0.0