Introduction

I Bosch Rexroth – engineering firm based in Lohr am Main in Germany

I Founded: 1 May 2001 I Headquarters: Lohr am Main, Germany I Products: hydraulic, electric, linear and pneumatic systems and components

Problem statement 1. Necessary investment for each region2. Production costs per valve housing for milling and drilling

1. Capacity and costs of the machines2. Existing machines3. Sales forecast

Distribution of production

Proposals (1/2)

I Strategy 1

When they’re valve housings missing in Europe we import first from America then from China.

I Strategy 2

Own production

Machine type

Europe America China

MC 1(from 2010)

2 0

FMC 2 0 1

Machine type

Europe America China

MC 0 2 0

FMC 3 0 1

Proposals (2/2)

I Strategy 3

When they’re valve housings missing in Europe we import from America.

Machine type

Europe America Asia

MC 1 2 0

FMC 2 0 1

Analysis of strategy 1

Analysis of strategy 2

Analysis of strategy 3

Investment costs

Production Costs

Solution Strategy 1 Strategy 2 Strategy 3

Strategy 2

PRODUCTIVE COSTS

AVALIABILITY OF THE PRODUCT

INVESTMENT MONEY

Timeline

2005 2006 2008 2010

Implementation of the solution

Annual report

5 years sales forecast

Any Questions?

Back up slide 1

Investment 4 5 3

Availability of the product

3 5 4

Production costs

2 3 3

Value: 3,2 4,6 3,4

Strategy 1 Strategy 2 Strategy 3

0,4

0,4

0,4

0,2 0,2

0,4

0,2

0,4

0,4

Back up slide 2 unit 2006 2008 2010

Forecast

Europe pieces/y 332000 360000 390000

America pieces/y 90000 93000 95000

China pieces/y 53000 80000 104000

Strategy 1

capacity

pieces/y

297600 297600 297600

condition -34400 -62400 -92400

capacity pieces/y 0 0 0

condition 0 0 0

capacity pieces/y 0 0 0

condition 0 0 0

Strategy 2

capacity

pieces/y

0

condition

capacity

pieces/ycondition

capacity

pieces/ycondition

Strategy 3

capacity

pieces/y

360000 360000 360000

condition 28000 0 -30000

capacity

pieces/y 0condition

capacity

pieces/y 0condition