Nurnberg Augsburg Maschinewerke (N.A.M)
1.Assume that you are Weiss. How many viable alternatives do you have to consider regarding the
initial shipment of 25 buses?
2.Which of the routing alternatives would you recommend to meet the initial 90-day deadline for the
25-bus shipment? Train or waterway? To which port(s)?
What would it cost?
3. What additional information would be helpful for answering question 2?
4. How important, in fact, are the transport costs for the initial shipment of 25 buses?
5. What kinds of customer service support must be provided for this initial shipment of 25 buses? Who is
6. The Brazilian buyer wants the buses delivered at Santos. Weiss looks up the International Chamber of
Commerce’s Incoterms and finds three categories of
DAT (Delivered at Terminal). In this type of transaction,
the seller clears the goods for export and bears all
risks and costs associated with delivering the goods
and unloading them at the terminal at the named port
or place of destination. The buyer is responsible for all
costs and risks from this point forward including
clearing the goods for import at the named country of
DAP (Delivered at Place). The seller clears the goods
for export and bears all risks and costs associated
with delivering the goods to the named place of
destination not unloaded. The buyer is responsible for
all costs and risks associated with unloading the
goods and clearing customs to import goods into the
named country of destination.
DDP (Delivered Duty Paid). The seller bears all risks
and costs associated with delivering the goods to the
named place of destination ready for unloading and
clearing for import.
7. How should he choose? Why?
8. Would you make the same routing recommendation
for the second, larger (199 buses) component of the
order, after the initial 90-day deadline is met? Why or
9. How important, if at all, is it for N.A.M. to ship via
water to show its support of the European Union’s
Motorways of the Seas concept?