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      04-20-2010, 03:26 PM   #25
Pierre
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Quote:
Originally Posted by Evice View Post
I think this is very sinister approach on BMWs side.

I wouldn't think BMW ship parts by air while they can ship larger quantities for cheaper with maritime lines, like when you order your car.

Quote:
Originally Posted by Seminole View Post
What benefit do they have of shutting down the lines? It means lost profits to them. I'm sure BMW did a cost analysis, and for some reason, it is more cost efficient to ship the transmissions by air.
I'd have to agree with you, these kind of deliveries are often based on time-schedules. Meaning the deliveries are most likely just-in-time, thus the only viable option is by air. This makes for a whole lot of time saved for a small extra cost.

In other words: if it were by ship, it could save you 100 bucks a car, but on the other hand, you'd have to wait for it a month or more longer.
But it's not that simple, if they were to do it by ship, they'd probably have large quantities come over, making up for more stock.
Bigger stock = slower rotation of that stock = stock cost goes way up.
So you might even end up losing your benefit of 100 bucks a car after all AND having to wait for your car a month longer. :-)
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