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Feasibility study of corporate expansion to California
2001 (English)Independent thesis Advanced level (professional degree), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This thesis has been conducted at one of the world’s leading manufacturing companies of their kind. The true name of the company is confidential why they will be referred to as Manufacturing AB. The company has a strong presence in the eastern part of USA, and seeks to expand their business to California on the west coast. There are three different ways for Manufacturing AB of reaching the Californian market: • Transportation to the west coast - meet the Californian market’s demand through transporting Manufacturing AB’s products by motor or rail from the east coast. • Production in California – set up a new production unit in California. • Mix - a combination between alternative 1 and 2. Manufacturing AB’s product offer in California will partly be distributed from the east coast and partly manufactured in California. The three alternatives generate different costs at different locations, and Manufacturing AB is looking to minimize the total cost of setting up their business in California. The purpose of this thesis has thus been to establish all Manufacturing AB’s products variable costs when they are produced in, or transported to California, and determine where they should be produced. Due to the characteristics of certain products alternative 1 and 2 were excluded at an early stage. In order to determine the best manufacturing location for each product group in the third alternative several different machine investments and combinations of them were evaluated. The thesis results in two superior machine investments, where the first includes only the machines necessary to manufacture the products that under no circumstances should be transported. The second includes four additional machines that contribute to sufficient cost savings in order for certain key products to become less expensive to produce in California.

Place, publisher, year, edition, pages
Keyword [en]
Technology, USA, transportation, location, logistics, logistik, lokalisering, transporter, expansion
Keyword [sv]
URN: urn:nbn:se:ltu:diva-46731ISRN: LTU-EX--01/048--SELocal ID: 45b33be6-bac7-4242-a0e6-5a466221da94OAI: diva2:1020046
Subject / course
Student thesis, at least 30 credits
Educational program
Industrial and Management Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

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