1. 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

2. Problem statement 1. Necessary investment for each region 2. Production costs per valve housing for milling and drilling 1. Capacity and costs of the machines 2. Existing machines 3. Sales forecast Distribution of production

3. 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 typeEuropeAmericaChina MC1(from 2010)20 FMC201 Machine typeEuropeAmericaChina MC020 FMC301

4. Proposals (2/2) I Strategy 3 When they’re valve housings missing in Europe we import from America. Machine typeEuropeAmericaAsia MC120 FMC201

5. Analysis of strategy 1

6. Analysis of strategy 2

7. Analysis of strategy 3

8. Investment costs

9. Production Costs

10. Solution Strategy 1Strategy 2 Strategy 3 Strategy 2 PRODUCTIVE COSTS AVALIABILITY OF THE PRODUCT INVESTMENT MONEY

11. Timeline 2005200620082010 Implementation of the solution Annual report 5 years sales forecast

12. Any Questions?

13. Back up slide 1

14. Back up slide 2 unit200620082010 Forecast Europepieces/y332000360000390000 Americapieces/y900009300095000 Chinapieces/y5300080000104000 Strategy 1 capacity pieces/y 297600 condition-34400-62400-92400 capacity pieces/y 000 condition000 capacity pieces/y 000 condition000 Strategy 2 capacity pieces/y 0 condition capacity pieces/y condition capacity pieces/y condition Strategy 3 capacity pieces/y 360000 condition280000-30000 capacity pieces/y0 condition capacity pieces/y0 condition