Case 8-1 Essay

Case Study 2 Case 8-1

1. In order to make my decision, I would want the probable statistics of the amount of product the new vessels would be able to carry across the waterways. It has already been mentioned that in comparison to a truck, the vessels could take three times the number days to transport the products. How would the length of time and the amount of product being carried affect the manufacturers and their rates?
2. To make a rational decision, I would need the user costs, operating costs, labor, and more importantly, costs of the vessels. I think these are the main components needed to really make any rational business decisions. Before creating a plan, a budget needs to be installed and all of the above mentioned costs are important in making sure there will be more gained than lost.
3. GLC should consider if this plan would even be effective with the transportation of goods using this mechanism when there are quicker ways to ensure delivery. Also, they should consider if the customer will be faced with higher costs for the same product they were receiving before. Just because the method of transportation became more expensive, doesn’t mean the value of the product should increase. This is almost a guaranteed way to lose customers.
5. I would suggest that GLC carefully consider every pro and con of the possible operation. Being able to transport products to the manufacturer in a larger quantity would be great, but does the possibility of losing customers or perhaps not being able to have the project funded by investments put the company in an economic decline be worth