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By Air or By Sea?
Weiss, Elliott N.; McCahill, Brian Case OM-1314 / Published March 8, 2006 / 7 pages.
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Product Overview

An OEM motor manufacturer is deciding where to locate a new manufacturing line for one of its customers. The options are China, Eastern Europe, Mexico and the U.S. Information is given to begin an initial location analysis. The decision focus of the case concerns transferring the line (after a 6-month to 2 year start-up phase) by either airfreight or sea freight. Students must calculate the freight cost, the inventory build-up and its associated cost and the overtime labor necessary to transfer the line.

  • Overview

    An OEM motor manufacturer is deciding where to locate a new manufacturing line for one of its customers. The options are China, Eastern Europe, Mexico and the U.S. Information is given to begin an initial location analysis. The decision focus of the case concerns transferring the line (after a 6-month to 2 year start-up phase) by either airfreight or sea freight. Students must calculate the freight cost, the inventory build-up and its associated cost and the overtime labor necessary to transfer the line.

  • Learning Objectives