1. Welcome to Llenroc Plastic Corporation

2. Llenroc Plastic Corporation Manufacturing plant in Nashville, TN Distribution market all over the US

3. Product High Pressure Decorative Laminates (HPDL) used as surface tops for tables, cabinets, counter tops,desks, etc. used as alternative to paint, vinyl, tile, wood, etc. popular due to low cost, high durability and variety.

4. Constructed from several layers of paper, pressed together with high pressure, then covered with a top sheet of printed paper Product (cont.) paper Printed paper polish

5. Market Segments –Direct Sales: Large orders to manufacturers, narrow product range concerns : cost, reliability, delivery. –Residential: Small orders to retail outlets and hardware stores concerns : cost, variety, lead time. –Specification: Large orders to construction projects concerns : cost, customization

6. Market (cont.) Segments Table 1

7. Market (cont.) Comparative Market Share Table 2

8. Market (cont.) Comparative Market Cost per SqFt Table 3

9. Market (cont.) Comparative Market Cost per SqFt Table 3

10. Service Customer Service Performance Table 5

11. Supply Chain

12. Distribution System

13. Data Flow System Central W/H Regional W/H orders OEMDistributors

14. Problems Poor off-shelf availability despite high inventory investment Long promise days to ship from order and often fail to meet due dates High freight cost Single manufacturing plant Low gross margin

15. Margin Gross Market driven Problem Sales Price$0.52 Raw Material$0.18 Labor and Overhead0.13 Manufactured Cost$0.31 Freight 0.02 Delivered Cost$0.34 Gross Margin$0.19

16. ABC-Classification

17. Llenroc ABC-Classification

18. Llenroc ABC-Classification without zero demand items