NIKE

WHERE IT'S MADE?

• Indonesia
• China
• Vietnam

Was it always made here?
- No, they began moving production out of the US because outside countries have more lenient wage rules, in an effort to curve rising cost and increase profitability.

Where are the inputs found & produced?
- The shoes start out of leather from cows in Texas, also cinch chemicals, and rubbers come from factories in Taiwan.

The rubber if the shoes are made from synthesis which is flown to Jakarta, Indonesia.

FACTORY LOCATION

• Tangerang, Banten, Indonesia

LABOR

• Chemical plants
• Powerful machines put together the shoes
• Hand labor in assembly line
• Paid poorly
• Not a lot of skill needed

Does proximity to markets apply?
- Taiwan has access to other places, has cheap labor, and is surrounded by water (easy to ship products).

CHANGING TECHNOLOGY & LOCATION

• Use heavy duty machinery that doesn't change location

Mode of transportation:
ships across the ocean and trucks

Break in bulk points:
ships to trucks

Does just in time delivery apply?
- When Nike has recalls they ship in new material.

FACTORY LOCATIONS

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