...American International Automotive Industries (AIAI), manufacturers automotive parts, truck engine parts, transmission parts and chassis parts to several countries which include the United States, South America, Canada, Mexico, Asia and Europe. The companies’ shipments are transported to its foreign markets by container ships. In Europe, the company ships to Hamburg and Gdansk where independent distribution companies have contracts to deliver its products throughout Europe. Recently, AIAI has been displeased with late deliveries and rough handling of their products. To make matters worse in their European market, trade barriers have fallen in the past five years, and European markets have opened up, and as a result, European businesses have expanded, there is more competition, and their customers have become increasingly demanding and focused on quality. As a result of the expanding European market, AIAI needs to start the process of selecting a new site for its European warehouse/distribution center. The European headquarters for AIAI are located in Hamburg. The VP of Construction and Development in Dayton, Ohio asked the Hamburg office to do a preliminary site search based on five factors: location, geography, transportation, proximity to customers, and costs. The Hamburg office also found five potential sites in Dresden, Lodz, Hamburg, Gdansk, and Frankfurt. In addition, the Hamburg office forwarded information about these sites to the Corporate headquarters that include the...
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