SUPPLY CHAIN BUSINESS GAME

SUGGESTED INDUSTRY / PRODUCT:

REASON(S) FOR SELECTION # GROUP MEMBERS

Pakistan has the least variable cost. 1 Tanveer Ahmed Bhatti

Fortunately Pakistan is in the center loction as per the available markets. 2 Minhas Mansoor

Three Countries have border with Pakistan. 3 Nadeem A.Khan

4 Azhar Hussain

LIMITATION(S), IF ANY

Being a Pakistani Company we cannot establish a manfacturing plant in India.

With some of the countries Pakistan has no formal trade relations like India , Russia etc.

With some of the countries No sea Route or Rail Route is available.

In some countries due to market saturation one cannot penetrate more.

ASSUMPTION, IF ANY
 MARKETS & MANUFACTURING POINTS
Unit Demand Global : 30,082,667 Selected : 16,522,008 Company : 9,515,187

MARKET

PLANT

✘
✘

✘
✘

✘
✘

✘
✘

✘
 MANUFACTURING / ASSEMBLE POINTS

Fixed Cost (Life = Buying Cost per Labour as % of Utilities as % of Govt Taxes On
Market Code Admin Cost
5Yr) Unit Material Cost Material Cost Profit

Pakistan PAK 192,510,000 49.50 23% 25% 1,500,000 20%

India IND 146,282,760 60.30 42% 15% 1,420,000 15%
China CHN 145,452,000 64.40 35% 15% 2,500,000 15%
Malaysia MAL 136,982,664 70.40 35% 26% 1,300,000 20%
UAE UAE 128,340,000 58.08 28% 38% 1,800,000 15%

MANUFACTURING PLANT'S FIXED COST UPTO 'N' MILLION UNITS OF DEMAND

Pakistan India China Malaysia UAE
Mn. Units PAK IND CHN MAL UAE
2 90,000,000 75,500,000 68,000,000 70,700,000 60,000,000
3 108,000,000 88,335,000 81,600,000 82,719,000 72,000,000
4 124,200,000 106,002,000 93,840,000 99,262,800 82,800,000
5 155,250,000 127,202,400 117,300,000 119,115,360 103,500,000
8 192,510,000 146,282,760 145,452,000 136,982,664 128,340,000
15 234,862,200 175,539,312 177,451,440 164,379,197 156,574,800
9999 258,348,420 193,093,243 195,196,584 180,817,116 172,232,280
 TOTAL DISCOUNT ON ACTUAL BUYING PRICE (IN MULTIPLES OF 0.5

Buying
Market 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th
Price

Pakistan 55 0.0% 5.0% 7.0% 8.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
India 67 6.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 9.0% 9.0% 9.0%
China 70 0.0% 5.0% 5.0% 6.0% 6.0% 6.0% 6.0% 7.0% 7.0% 7.0%
Malaysia 80 0.0% 0.0% 4.0% 5.0% 5.0% 6.0% 7.0% 7.0% 7.1% 7.1% 7.1% 7.1% 7.5%
UAE 66 4.0% 5.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 8.0% 9.0% 9.0% 9.0%

Code Pricing
Pre Premium
Avg Average
Eco Economy
TIPLES OF 0.5 MN. UNITS PURCHASED)

14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th

10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
9.0% 9.0% 9.0% 9.0% 10.0% 10.0% 10.0% 10.0% 11.0% 11.0% 11.0%
7.0% 7.0% 7.0% 7.0% 8.0% 8.0% 8.0% 8.0% 9.0% 9.0% 9.0%
7.5% 7.5% 7.5% 7.5% 9.0% 9.0% 9.0% 12.0% 12.0% 12.0% 12.0%
9.0% 9.0% 9.0% 9.0% 11.0% 11.0% 11.0% 12.0% 12.0% 12.0% 14.0%
 DISTRIBUTION

Primary
Travel Days Days Cover
Distance in KM Vehicle Charges
(Standard) Required
(Rs. per KM)

0 1.8 4.1 12.6

500 1.7 4.5 12.6
1000 1.7 5.0 12.6
1500 1.6 5.4 14.4
2000 1.6 5.9 14.4
2500 1.5 6.3 14.4
3000 1.4 6.8 14.4
3500 1.4 7.2 14.4
4000 1.3 7.7 16.2
4500 1.3 8.1 16.2
5000 1.2 8.6 16.2
5500 1.2 9.0 16.2
6000 1.1 9.5 16.2
6500 1.1 9.9 18
7000 1.0 10.4 18
7500 1.0 10.8 18
8000 0.9 11.3 18
8500 0.9 11.7 18
9000 0.8 12.2 19.8
9500 0.8 12.6 19.8
10000 0.8 13.1 19.8
10500 0.7 13.5 19.8
11000 0.7 14.0 19.8
11500 0.6 14.4 21.6
12000 0.6 14.9 21.6
 MODES OF DISTRIBUTION

Transport Cost
Transportation Conversion Cost Inflation
Code as % of
Mode Factor Factor
Material Cost

T TRAIN 1.6 10% 25%

R ROAD 1 15% 60%
A AIR 0.8 28% 100%
S SEA 2.5 18% 30%
 USER SELECTION

Mode of Target % of % of POPs to % of POPs to % of POPs to

Stock Cover
Code Primary Max. Coverage be visited be visited be visited Pricing Policy
in Weeks
Transp'n (30% - 100%) Fortnightly Weekly Twice a Week

Market
Afghanistan R 70% 100% 0% 0% 1 Eco
Bangla Desh S 70% 100% 0% 0% 3 Eco
Eastern Russia A 100% 100% 2% -2% 1.8 Avg
Egypt S 100% 100% 3% -3% 2 Avg
India R 100% 100% 4% -4% 1 Eco
Iran R 70% 50% 50% 0% 1 Eco
Iraq R 100% 100% 6% -6% 1 Avg
Kazakhtan R 100% 100% 7% -7% 1 Eco
Malaysia A 70% 70% 30% 0% 1.3 Pre
Mangolia R 100% 100% 9% -9% 1 Avg
Nepal R 100% 100% 4% -4% 1 Avg
China R 50% 100% 0% 0% 3 Pre
Pakistan R 100% 50% 50% 0% 1 Avg
Saudia S 60% 100% 20% -20% 5 Pre
Southern China R 100% 100% 9% -9% 1 Pre
Sri Lanka S 80% 60% 40% 0% 3.2 Avg
Turkey A 70% 70% 30% 0% 1.6 Pre
UAE S 90% 50% 50% 0% 2.4 Pre
Western Russia R 100% 100% 12% -12% 1 Pre
 PRIAMRY DISTANCE MATRIX (KM)

Manufact'g
UAE PAK IND CHN MAL
Points:

Market 2 3 4 5 6
Afghanistan 2500 1500 3800 4200 9000
Bangla Desh 7000 4300 2000 2000 3000
Eastern Russia 7800 5800 7500 3200 8200
Egypt 5000 7100 8000 8700 9000
India 5000 2300 1200 3900 4600
Iran 1800 2900 4600 5500 10500
Iraq 2700 4500 5600 6500 12000
Kazakhtan 4700 3800 6100 4500 8000
Malaysia 11800 7600 4600 5500 250
Mangolia 8400 6000 5900 2000 6000
Nepal 5400 2600 2000 2000 4300
China 6500 4000 4200 2000 5500
Pakistan 3500 800 2300 4000 7600
Saudia 3000 5000 6800 7500 9000
Southern China 11000 8000 5600 2000 2800
Sri Lanka 6700 5000 2300 5500 2000
Turkey 4000 5500 6000 7000 14000
UAE 500 2800 5000 6500 11800
Western Russia 6400 7500 9800 8000 12000
 REDISTRIBUTION

Secondary
Distance in KM Vehicle Charges
(Rs. per KM)

5 5.4
10 5.2
15 5.0
20 4.8
25 4.5
30 4.3
35 4.1
40 3.9
45 3.7
50 3.5
55 3.2
60 3.0
65 2.8
70 2.6
75 2.4
80 2.2
85 1.9
90 1.7
95 1.5
100 1.3
105 1.1
110 0.9
115 0.6
120 0.4
125 0.2
 DEMAND IN UNITS

Demand Pattern: Upper Third Middle Third Lower Third

Market 9,709,576 12,083,588 8,289,503

Afghanistan 174,636 158,054 32,105
Bangla Desh 124,029 142,249 78,727
Eastern Russia 519,750 705,600 859,950
Egypt 283,100 632,218 744,952
India 783,437 839,664 243,653
Iran 352,183 620,928 971,170
Iraq 528,953 451,584 85,766
Kazakhtan 77,616 197,568 206,388
Malaysia 197,072 229,320 246,212
Mangolia 86,639 112,896 75,332
Nepal 31,823 39,514 22,015
China 1,797,296 1,926,288 558,968
Pakistan 286,371 329,280 163,199
Saudia 156,475 293,530 316,282
Southern China 707,858 1,185,408 814,545
Sri Lanka 603,076 1,083,802 1,800,621
Turkey 1,144,215 1,066,867 195,656
UAE 638,418 587,059 247,921
Western Russia 1,216,631 1,481,760 626,044

1.10 1.60 1.30

 ORDERING RELATED COSTS

Fixed Setup Cost per Inventory

Costs: Material Cost
Cost Order Holding Cost

Market Rs. Rs. % of Price Rs. Per Unit

Afghanistan 700,000 12.48 5.00% 115.00
Bangla Desh 360,000 11.03 4.40% 136.50
Eastern Russia 787,500 4.73 4.80% 150.80
Egypt 700,000 7.50 4.20% 118.00
India 472,500 7.29 1.00% 109.20
Iran 600,000 4.60 3.40% 115.00
Iraq 1,134,000 5.00 5.00% 116.50
Kazakhtan 1,150,000 6.90 3.00% 152.10
Malaysia 567,000 8.10 7.50% 133.90
Mangolia 1,102,500 6.03 2.30% 115.50
Nepal 202,500 5.18 7.00% 152.10
China 350,000 9.00 3.80% 152.10
Pakistan 360,000 3.00 4.70% 86.00
Saudia 735,000 10.08 3.00% 152.75
Southern China 346,500 4.50 7.00% 86.00
Sri Lanka 460,000 4.50 2.10% 151.45
Turkey 540,000 7.54 5.30% 151.45
UAE 455,000 12.60 4.50% 139.00
Western Russia 607,500 5.63 5.30% 150.80
 REDISTRIBUTION PARAMETERS

Average
Total Min % for Max.
Cost per Distance
Relevant Twice a Week Coverage of
Service Travelled in
POPs Visit to POP Market
KM per POP

Market
Afghanistan 2,511 13.00 15% 40% 29
Bangla Desh 3,158 21.00 14% 60% 23
Eastern Russia 9,191 10.00 15% 36% 18
Egypt 6,162 14.10 20% 46% 26
India 4,236 13.00 25% 61% 14
Iran 12,103 14.10 10% 57% 44
Iraq 5,349 24.47 20% 74% 18
Kazakhtan 2,348 13.00 20% 27% 37
Malaysia 4,503 14.10 15% 60% 30
Mangolia 2,945 13.00 15% 55% 33
Nepal 596 21.00 15% 41% 23
China 15,532 10.00 20% 59% 37
Pakistan 5,560 17.10 20% 43% 32
Saudia 2,478 13.00 18% 66% 22
Southern China 11,329 14.10 18% 31% 24
Sri Lanka 9,429 14.60 15% 57% 47
Turkey 6,234 12.50 12% 58% 11
UAE 8,640 10.00 12% 49% 26
Western Russia 15,336 17.10 15% 50% 24
 PRICING, SALES & RETURNS

Pricing Price
Price
Profit Sales Policy Margin Premium Price Economy Price
Demand
Margin Return (Pre/Avg/ & Mrktg Impact Impact
Factor
Eco) Factor

Market % % Demand Margin Demand Margin

Afghanistan 88% 6% Eco 27% -24% -15% 22% 27% -24%
Bangla Desh 97% 5% Eco 9% -25% -16% 17% 26% -25%
Eastern Russia 94% 14% Avg 0% 0% -14% 19% 27% -24%
Egypt 92% 6% Avg 0% 0% -18% 21% 28% -26%
India 92% 17% Eco 9% -27% -22% 25% 31% -27%
Iran 100% 7% Eco 9% -28% -17% 19% 31% -28%
Iraq 86% 7% Avg 0% 0% -16% 22% 28% -24%
Kazakhtan 119% 12% Eco 9% -23% -15% 17% 27% -23%
Malaysia 83% 7% Pre -5% 22% -19% 22% 29% -26%
Mangolia 109% 12% Avg 0% 0% -20% 25% 29% -27%
Nepal 93% 8% Avg 0% 0% -21% 17% 27% -25%
China 79% 4% Pre -5% 24% -20% 24% 29% -26%
Pakistan 89% 8% Avg 0% 0% -15% 16% 31% -24%
Saudia 99% 10% Pre -5% 17% -16% 17% 30% -25%
Southern China 84% 3% Pre -5% 17% -16% 17% 29% -23%
Sri Lanka 97% 11% Avg 0% 0% -14% 15% 27% -25%
Turkey 101% 6% Pre -5% 15% -18% 15% 26% -26%
UAE 94% 12% Pre -5% 27% -17% 27% 28% -27%
Western Russia 116% 7% Pre -5% 22% -22% 22% 29% -27%
 TARIFFS

Corporate
Import Duty Export Duty
Tax

Afghanistan 7% 8% 27%
Bangla Desh 4% 13% 35%
Eastern Russia 11% 17% 40%
Egypt 9% 32% 29%
India 6% 14% 18%
Iran 12% 26% 34%
Iraq 4% 12% 40%
Kazakhtan 13% 25% 23%
Malaysia 16% 32% 34%
Mangolia 8% 23% 30%
Nepal 4% 17% 30%
China 13% 14% 23%
Pakistan 9% 21% 32%
Saudia 17% 8% 23%
Southern China 8% 6% 30%
Sri Lanka 16% 16% 34%
Turkey 20% 14% 18%
UAE 8% 23% 20%
Western Russia 7% 12% 35%
 DISTRIBUTION & REDISTRIBUTION COSTS & REVENUE

PRIMARY DISTRIBUTION COSTS

COVERAGE STOCK COVER
LEAD
COUNTRY DEMAND IN DISTANCE MODE OF VEHICEL ADDN'L
DAYS SETUP / IMPORT
MARKETS MAX. UNITS (KM) TRANS CHARGES / TRANSP'T TOTAL
TARGET REQ'D DAYS OK? UNITS ORDER COST DUTY
SHARE RENT /ETC. COST

TOTAL

10 55% 39% 9,515,187 39,400 XXX 12.88 15.75 3,034,000 5,166,523 4,084,068 191,163,609 259,817,401 460,231,601

Afghanistan 40% 28% 48,928 1,500 R 5.4 7.0 6,586 701,325 202,176 393,868 844,003 2,141,372

Bangla Desh 60% 42% 173,807 4,300 S 19.1 21.0 70,191 362,399 388,348 948,985 4,270,433 5,970,165

Iran 57% 40% 1,734,957 2,900 R 6.3 7.0 233,552 603,950 362,885 24,607,468 29,928,002 55,502,305

Malaysia 60% 42% 370,167 7,600 A 8.6 9.1 64,779 570,880 777,754 7,930,458 13,878,302 23,157,393

China 59% 30% 1,981,028 4,000 S 19.1 21.0 800,031 357,178 444,621 39,170,869 54,236,588 94,209,256

Pakistan 43% 43% 334,906 800 R 4.5 7.0 45,083 361,425 115,814 2,496,163 4,320,282 7,293,684

Saudia 66% 40% 439,047 5,000 S 21.4 35.0 295,512 738,184 416,416 11,177,395 12,071,587 24,403,582

Sri Lanka 57% 46% 2,206,112 5,000 S 21.4 22.4 950,325 463,973 416,416 53,458,496 60,140,808 114,479,694

Turkey 58% 41% 1,404,978 5,500 A 7.2 11.2 302,611 546,519 674,960 41,847,511 59,579,507 102,648,498

UAE 49% 44% 821,259 2,800 S 15.8 16.8 265,330 460,689 284,677 9,132,396 20,547,890 30,425,652
 DISTRIBUTION & REDISTRIBUTION COSTS & REVENUE

MATERIAL / INVENTORY COST TOTAL VISITS REDISTRIBUTION COST

COUNTRY POP ADMIN COST

MARKETS HOLDING COVERED MARKETING VEHICLE &
MATERIAL COST TOTAL PER WEEK PER ANNUM LOST SALES (15% OF MKT TOTAL
COST COST FUEL
COST)

TOTAL TOTAL TOTAL

10 50,072,816 1,336,671,817 1,386,744,633 27,352 17,761 923,550 12,444,808 128,792,932 744,391 1,866,721 143,848,853

Afghanistan 281,334 5,626,687 5,908,022 703 352 18,280 180,607 2,385,550 3,670 27,091 2,596,918

Bangla Desh 1,043,884 23,724,627 24,768,511 1,334 667 34,677 546,162 3,828,335 12,166 81,924 4,468,587

Iran 6,783,680 199,520,012 206,303,693 4,829 3,622 188,335 1,911,975 32,318,249 86,748 286,796 34,603,768

Malaysia 3,717,402 49,565,363 53,282,765 1,891 1,229 63,925 1,099,631 8,246,272 27,763 164,945 9,538,610

China 11,449,946 301,314,377 312,764,323 4,582 2,291 119,130 1,477,217 18,072,088 198,103 221,583 19,968,991

Pakistan 1,353,688 28,801,877 30,155,565 2,391 1,793 93,241 1,594,425 12,829,989 33,491 239,164 14,697,068

Saudia 2,011,931 67,064,370 69,076,301 981 294 15,308 232,836 1,616,535 83,419 34,925 1,967,715

Sri Lanka 7,016,428 334,115,602 341,132,030 4,300 3,010 156,506 2,284,992 27,216,448 165,458 342,749 30,009,647

Turkey 11,277,550 212,783,954 224,061,504 2,531 1,645 85,548 1,229,752 4,893,342 84,299 184,463 6,391,855

UAE 5,136,973 114,154,947 119,291,919 3,810 2,858 148,599 1,887,212 17,386,125 49,276 283,082 19,605,694
 DISTRIBUTION & REDISTRIBUTION COSTS & REVENUE

DOWNSTREAM REVENUE
DOWN
COUNTRY
STREAM SALES NPS
MARKETS GROSS SALES LOST SALES NET SALE
COST RETURNS

TOTAL TOTAL TOTAL

10 604,080,454 2,634,431,990 744,391 - 204,589,161 2,429,842,829 1,825,762,375

Afghanistan 4,738,290 11,719,264 3,670 - 703,156 11,016,108 6,277,818

Bangla Desh 10,438,753 44,478,931 12,166 - 2,223,947 42,254,985 31,816,232

Iran 90,106,073 374,060,119 86,748 - 26,184,208 347,875,911 257,769,838

Malaysia 32,696,003 96,528,545 27,763 - 6,756,998 89,771,546 57,075,543

China 114,178,246 581,084,775 198,103 - 23,243,391 557,841,384 443,663,138

Pakistan 21,990,751 54,435,547 33,491 - 4,354,844 50,080,703 28,089,952

Saudia 26,371,297 137,616,087 83,419 - 13,761,609 123,854,479 97,483,182

Sri Lanka 144,489,341 658,207,736 165,458 - 72,402,851 585,804,885 441,315,544

Turkey 109,040,352 436,632,674 84,299 - 26,197,960 410,434,714 301,394,361

UAE 50,031,346 239,668,311 49,276 - 28,760,197 210,908,114 160,876,767

 MANUFACTURER

INVESTMENT ON FACTORY 38,502,000

DEMAND + COVER (UNITS) 12,549,187

Material Cost 621,184,764

Labour Cost 2,886,313
Utilities Cost 3,137,297
DIRECT COST 627,208,374
ADMIN COST 1,500,000
VARIABLE COST 628,708,374
EXPORT DUTY 128,885,217

TOTAL COST 796,095,590

TOTAL REVENUE 1,386,744,633

GROSS PROFIT 590,649,042 43%

TAX 20% 118,129,808

NET PROFIT 472,519,234 34%

 DISTRIBUTORS (COLLECTIVE)

COST OF PRIMARY OPS 460,231,601 -19%

Gross Sales 2,634,431,990

Lost Sales (Distr.Freq.) - 744,391
Sales Returns - 204,589,161
NET REVENUES FROM SALES 2,429,098,438

Holding Cost 50,072,816

Material Cost 1,336,671,817
Cost of Secondary Ops 143,848,853
COST OF SALES OPS 1,530,593,486

NET PROCEEDS FROM SALES 898,504,952 37%

GROSS PROFIT 438,273,351 22%

TAX 112,888,783

NET PROFIT 325,384,569 13.4%