1. With ith respect respect to the natural natural resour resources ces needed to make make wickab wickable le shirts shirts,, is Patna or Lucknow the preferred location? location? Why? 2. With With respect respect to transp transport ortati ation on consid considera eratio tions, ns, is Patna Patna or Lucknow Lucknow the prefer preferred red location? Why? 3. With With respect to labor characteristics, is Patna or Lucknow the preferred location? Why? 4. With With respect respect to uality uality!of! !of!lif lifee conside considerat ration ions, s, is Patna Patna or Lucknow Lucknow the prefer preferred red location? Why? ". #hould $%L# recommend that the manufacturin& plant be located in Patna or Lucknow? Why? '. Would you answer to (uestion " chan&e if the shirts are e)ported throu&h the Port of *olkata? Why or why not? +. #uppose that $$$ decides to near!source production to Latin $merica. $merica. *eepin& in mind the key stipulati stipulation on presented presented in the case, where mi&ht $$$ locate locate its production production plant in Latin $merica? Why?
SOLUTION
1.
%t does does not not app appear ear that that eit eithe herr Patn Patnaa or Luck Luckno now w has has an adan adanta ta&e &e wit with h resp respec ectt to the the natural resources needed to make wickable shirts.
2.
$s of late late 2-13, 2-13, a hi&hw hi&hway ay trip trip betwe between en Luc Luckno know w and and um umbai bai is esti estima mate ted d to take take 22 hours, while a hi&hway trip between Patna and umbai is estimated to take 2/ hours. hours. %n addition, addition, Lucknow appears appears to offer superior superior rail serice serice to umbai in comparison comparison to Patna. $lthou&h $lthou&h both cities cities offer air serice to umbai, umbai, Lucknow proides non!stop air serice to umbai, while Patna0s serice to umbai is ia connectin& fli&hts, &enerally throu&h ew elhi. hese data su&&est that Lucknow would be the preferred location.
3.
$s of of late late 2-1 2-13, 3, the the min minim imum um wa& wa&ee for for skil skille led d labo laborr in tai tailo lori rin& n&55 in Pat Patna na was was 22" 22" rupees per day, compared to 2"3 rupees per day in Lucknow. oreoer, Patna has
the hi&hest unemployment rate in %ndian cities with more than one million residents. hese data su&&est that Patna would be the preferred location.
4.
$s of late 2-13, the cost of liin& is hi&her in Patna than Lucknow, lar&ely because of housin& costs. Patna also has hi&her leels of reported crime than Lucknow althou&h criminal actiity in Lucknow is increasin& faster than in Patna in recent years. Lucknow appears to offer better educational opportunities than Patna, in part because more colle&es and uniersities are located there. %ndian census data also indicate that the male 6 female ratio is more unbalanced in Patna than Lucknow, which mi&ht indicate that Patna is less hospitable and initin& to females. his information su&&ests that Lucknow would be the preferred location.
".
7ased on (uestions 1 8 4, Lucknow appears to be preferable to Patna.
'.
he distance from Lucknow to *olkata is appro)imately '1" miles and the correspondin& hi&hway trip is estimated to take 14 hours. he distance from Patna to *olkata is appro)imately 3'- miles and the correspondin& hi&hway trip is estimated to take nine hours. 7oth Patna and Lucknow offer direct rail serice to *olkata and both cities also offer non!stop fli&hts to *olkata. oreoer, both *olkata and Patna hae fi)ed 9as opposed to floatin&: terminals on %ndia0s ational Waterway 1. ue to improed transportation metrics, Patna appears to be a iable option for a manufacturin& plant if the shirts are e)ported throu&h the Port of *olkata.
+.
$s of late 2-13, there are appro)imately 3" Latin $merican cities that meet the population stipulation presented in the case. wo of these, ;uare< and i=uana, are e)ican cities located in close pro)imity to the >nited #tates. ;uare<, located =ust south of l Paso, e)as, proides four separate points of entry into the >n ited #tates and is centrally located relatie to i=uana, which is =ust south of #an ie&o, @alifornia. %t should be noted that ;uare< has e)perienced hi&h leels of crime and iolence in recent years.
