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LMGT 1319 AIUO Nürnberg Augsburg Maschinenwerke Viable Alternatives Discussion

 

CASE 14-1 Nürnberg Augsburg Maschinenwerke (N.A.M.)

Question 1: Assume that you are Weiss. How many viable alternatives do you have to consider regarding the initial shipment of 25 buses?

Question 2: Which of the routing alternatives would you recommend to meet the initial 90-day deadline for the 25-bus shipment? Train or waterway? To which port(s)? What would it cost?

Question 3: What additional information would be helpful for answering Question 2?

Question 4: How important, in fact, are the transport costs for the initial shipment of 25 buses?

Question 5: What kinds of “customer service” support must be provided for this initial shipment of 25 buses? Who is responsible?

Question 6: The Brazilian buyer wants the buses delivered at Santos. Weiss looks up the International Chamber of Commerce’s Incoterms and finds three categories of “delivered” at a receiving port. They are:

How should he choose? Why?

Question 7: Would you make the same routing recommendation for the second, larger (199 buses) component of the order, after the initial 90-day deadline is met? Why or why not?

Question 8: How important, if at all, is it for N.A.M. to ship via water to show its support of the European Union’s Motorways of the Seas concept?