Assignment:
You are the head of development of BESTProduct. BESTProduct is built of two major components, COMP-A and COMP-B. Currently, COMP-A is designed and manufactured in Germany and COMP-B is designed and manufactured in Mexico. You have been tasked to decide whether to leave the organization as is, or localize the design of both components in Germany and the manufacturing of both components in Mexico. The integration of components into BESTProduct occurs in the USA. The product is sold worldwide. The objective of your company is to minimize the development and production costs of BESTProduct, while minimizing supply risks in the future. Please, develop a model of the decision and describe the conditions on which each option would make sense.