Conduct an appropriate quantitative analysis

Assignment Help Financial Accounting

Reference no: EM13755636

Scenario: You are an independent consultant, hired by the Vice President of Construction, American International Automotive Industries (AIAI). Review Case Problem S7-1. Conduct an appropriate quantitative analysis and provide the vice president with a decision support paper addressing the issues within the Case Problem.

Specific guidance: You are expected to use the quantitative analysis methods within this module to arrive at conclusions and provide supported recommendations within your formal paper. You should select appropriate graphical presentation methodologies to present this material within the paper. Include all computation materials as appendices to the completed report.

CASE PROBLEM S7.1

Selecting a European Distribution Center Site for American International Automotive Industries

American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. The company transports to its foreign markets by container ships. To serve its customers in South America and Asia, AIAI has large warehouse/distribution centers. In Europe it ships into Hamburg and Gdansk, where it has contracted with independent distribution companies to deliver its products to customers throughout Europe. However, AIAI has been displeased with a recent history of late deliveries and rough handling of its products. For a time AIAI was not overly concerned since its European market wasn't too big and its European customers didn't complain. In addition, it had more pressing supply chain problems elsewhere. In the past five years, since trade barriers have fallen in Europe and Eastern European markets have opened up, its Europeans business has expanded, as has new competition, and its customers have become more demanding and quality conscious. As a result, AIAI has initiated the process to select a site for a new European warehouse/distribution center. Although it provides parts to a number of smaller truck and auto maintenance and service centers in Europe, it has seven major customers—auto and truck manufacturers—in Vienna, Leipzig, Budapest, Prague, Krakow, Munich, and Frankfurt. Its customers in Vienna and Budapest have adopted manufacturing processes requiring continuous replenishment of parts and materials.

AIAI's European headquarters is in Hamburg. The vice-president for construction and development in Dayton, Ohio, has asked the Hamburg office to do a preliminary site search based on location, geography, transportation, proximity to customers, and costs. The Hamburg office has identified five potential sites in Dresden, Lodz, Hamburg, Gdansk, and Frankfurt. The Hamburg office has forwarded information about each of these sites to corporate headquarters, including forecasts of the number of containers shipped annually to each customer as follows: Vienna, 160; Leipzig, 100; Budapest, 180; Prague, 210; Krakow, 90; Munich, 120; and Frankfurt, 50. When the vice-president of construction in Dayton received this information, he pulled out his map of Europe and began to study the sites.

Assist AIAI with its site selection process in Europe. Recommend a site form the five possibilities, and indicate what other location factors you might consider in the selection process.

Reference no: EM13755636

Questions Cloud

Approach and his concept of unconditional positive : Explain Rogers' person-centered approach and his concept of unconditional positive regard. How is this approach different from other humanistic approaches, and from the models that you have studied earlier in the course?

Operational efficiency and effectiveness : Suggest how health care leaders can use project metrics and portfolio management to ensure operational efficiency and effectiveness. Provide specific examples to support the response

Budgeted direct labor cost for january : Fantastic Futons goes through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.Assuming t..

Prepare the journal entry to record the impairment : Assume that Suarez will continue to use this asset in the future. As of December 31, 2014, the equipment has a remaining useful life of 4 years. Impairment) Assume the same information as E11-16, except that Suarez intends to dispose of the equipment..

Conduct an appropriate quantitative analysis : American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia, and Europe. T

Match the affect to the transaction : Match the affect to the transaction :

Describe the connection between power and leadership : •Describe the connection between power and leadership as explained in the textbook. •Choose a personal situation where you were a leader. What type of leader were you? Do you think you were an effective leader? How did having power affect you? Did yo..

Why you think the network is effective and efficient : Select a business that you believe has a good communication network. Examine its network design and explain why you think the network is effective and efficient

Differentiate between stereotypes and prejudice : Overall, studies have shown that that stereotypes most often are accurate, with some notable exceptions. For example, political stereotypes are consistently inaccurate, while gender stereotypes tend to be highly accurate. For this assignment, conside..

User Account

All Pages