Company PI, a manufacturer of terrain vehicles, side-by-sides, and snowmobiles, wanted to find a new location to manufacture the side-by-side vehicles. This job fell on the hands of Person SK, the vice president of the operations at Company PI. The economic condition of the U.S. had put a substantial pressure on Company PI’s profits; so, they were in talks to decide whether to open plants in countries with lower labor cost. Within the end of the year, Person SK has to propose his decision to the board. To determine: The location that provides the greatest cost advantages.

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Chapter CS, Problem 11.1CQ

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Case summary:

Company PI, a manufacturer of terrain vehicles, side-by-sides, and snowmobiles, wanted to find a new location to manufacture the side-by-side vehicles. This job fell on the hands of Person SK, the vice president of the operations at Company PI.

The economic condition of the U.S. had put a substantial pressure on Company PI’s profits; so, they were in talks to decide whether to open plants in countries with lower labor cost. Within the end of the year, Person SK has to propose his decision to the board.

To determine: The location that provides the greatest cost advantages.

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