OPM 4200 Module 3 Case Assignment: Should the E-Bike Maker Assemble in Mexico? Example

Reviewed by Edgar Pennington, MBA Thomas Edison State University Updated October 2026

This OPM 4200 Module 3 sample answers a case assignment on supply chain design in Supply Chain Management, from TESU's Bachelor of Science in Business Administration in Operations Management. OPM-4200 asks in this module how firms design the structure of their supply chains: which activities to perform, where to locate them and how to build in agility and alignment. The paper takes up a design question facing the composite Bordentown electric bicycle company: whether to keep all assembly in New Jersey, move commuter assembly to Monterrey, Mexico, or contract assembly to a firm in Taiwan near the frame supplier. It compares the options on unit cost, lead time and flexibility, applies the triple-A framework and recommends a split design.

CourseOPM-4200 Supply Chain Management
ModuleModule 3
Paper typeModule 3 case assignment: supply chain design
LengthAbout 574 words, 5 pages
FormatAPA 7 student paper
SchoolThomas Edison State University
ProgramB.S.B.A. in Operations Management
UpdatedOctober 2026

Free sample paper for OPM 4200 Module 3

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Near the Market or Near the Parts? Redesigning Where E-Bikes Are Assembled

Student Name

B.S.B.A. in Operations Management, Thomas Edison State University

OPM-4200: Supply Chain Management

Mentor Name

Month Day, Year

What this page is doingThe title frames the design trade-off, proximity to customers against proximity to suppliers, that the case resolves.
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Near the Market or Near the Parts? Redesigning Where E-Bikes Are Assembled

The Design Question

Labor costs in Bordentown have risen 20 percent in three years, and the plant will reach capacity within eighteen months as sales grow. Module 1 concluded that the commuter model needs an efficient supply chain and the performance line a responsive one. The design question is where each should be assembled.

The Options

Fawcett et al. (2007) describe supply chain design as decisions about the structure of the network, which activities the firm performs itself, where facilities sit and how materials flow, made to support the competitive strategy. I estimated unit cost to the U.S. market for the commuter model, including parts, assembly labor, freight and duties, and the lead time from order to U.S. warehouse.

For the performance line, unit costs follow the same pattern, but the value of speed is much higher, because each week of lead time adds forecast error on a product whose demand changes with every review.

OptionUnit cost, commuter modelLead time to U.S. warehouseFlexibility
Bordentown (current)$1,1801 weekHigh
Monterrey, company plant$1,0952 weeks by truckModerate
Taiwan, contract assembler$1,0606 to 7 weeks by oceanLow

The Triple-A Framework

Lee (2004) argued that the best supply chains are agile, responding quickly to short-term changes in demand or supply; adaptable, adjusting their design as markets and strategies change; and aligned, creating incentives for partners to improve the performance of the chain as a whole. Cost alone does not capture these qualities.

OptionAgilityAdaptabilityAlignment
BordentownHighLimited by capacityFull control
MonterreyGood; truck access to U.S.Good; room to growFull control
Taiwan contractorPoor; ocean lead timeContractor's capacityContractor's incentives may differ

Analysis

For the commuter model, Taiwan offers the lowest unit cost, but its six-week lead time and the loss of control matter less for a functional product with stable demand. Even so, Monterrey's cost is only $35 higher, it ships by truck in two weeks and it gives the company control of quality and a site that can grow. The USMCA, the North American trade agreement, can reduce duties on bikes that meet its rules of origin, which our customs broker estimates the commuter bike can satisfy with Mexican assembly and a North American battery pack. Christopher and Holweg (2011) argue that supply chains designed only for low cost in a stable world have become fragile, and that firms should build in structural flexibility. Monterrey offers more of it than Taiwan.

For the performance line, speed is worth more than any labor saving. Keeping its assembly in Bordentown preserves the one-week response that Module 1's responsive chain needs.

What this page is doingWeighing a $35 cost gap against lead time, control and resilience shows why the lowest-cost option is not automatically the best design.
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Recommendation

Move commuter assembly to a company-run plant in Monterrey over eighteen months, which frees Bordentown capacity for the growing performance line. Keep performance assembly, design and final testing in Bordentown. Review the Monterrey plant's costs after two years against a Taiwan contract quote, to keep the decision honest.

Risks

The main risks are startup quality problems in Monterrey, changes in trade policy and security of truck routes. A six-month overlap, in which both plants build commuter bikes, guards against the first, and a second customs broker reduces exposure to the others.

Conclusion

A split design, efficient assembly near the U.S. market for the functional product and responsive assembly at home for the innovative one, fits the strategy better than any single location.

References

Christopher, M., & Holweg, M. (2011). "Supply chain 2.0": Managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63-82. https://doi.org/10.1108/09600031111101439

Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2007). Supply chain management: From vision to implementation. Pearson Prentice Hall.

Lee, H. L. (2004). The triple-A supply chain. Harvard Business Review, 82(10), 102-112.

What the OPM 4200 Module 3 instructions ask for

The Module 3 case covers supply chain design. Expect to evaluate options for the structure of a supply chain, such as where to locate production or whether to outsource it, using cost, lead time, flexibility and strategic fit. Compare options in a table and apply a design framework such as the triple-A supply chain. Explain how the design supports the firm's strategy, and name the risks of the option you recommend along with how to manage them. Compare at least three options, including the current design, and estimate unit cost and lead time for each from the case data or reasonable assumptions you state. State your cost assumptions plainly.

How this OPM 4200 Module 3 example is built

The paper sets out the design question and its link to the strategy from Module 1. A table compares three options on unit cost, lead time and flexibility, and a second table rates them on agility, adaptability and alignment. An analysis section weighs cost against speed, control and resilience, with research on fragile supply chains, and treats the two products separately. The paper ends with a recommendation, risks and a conclusion. The analysis treats the commuter and performance products separately, recommending a different location for each, and a review clause keeps the decision open to a future contract quote. A second table rates each option on agility, adaptability and alignment, making the qualitative comparison as visible as the cost comparison.

Where the marks sit in the OPM 4200 Module 3 rubric

Mentors grade this case on correct use of design concepts, a balanced comparison of options, link to strategy, a reasoned recommendation and clear writing. Papers that weigh cost against agility and resilience, rather than choosing the cheapest option, show understanding of design. Treating different products differently demonstrates strategic thinking. Naming risks and a way to manage them shows that the recommendation is realistic. A design that treats each product according to its needs, and builds in a review, shows strategic flexibility. Rating options on agility, adaptability and alignment demonstrates use of the framework. Recognizing trade rules and their effect on cost shows attention to the global context of design. Each option gets fair treatment.

Common OPM 4200 Module 3 mistakes, and how to avoid them

Students lose points by comparing locations on labor cost alone, by ignoring lead time and control or by recommending one design for all products. Others leave out risk. Compare total unit cost, lead time and flexibility. Apply a design framework. Match the design to each product's needs. Name the risks and how you would manage each one. Treat products with different demand differently, and plan a review of your choice after a set period. Remember that trade rules and duties can change the cost ranking of locations. A free first sample on your own OPM-4200 supply chain design case is available on request.

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More OPM 4200 and B.S.B.A. in Operations Management sample papers

OPM 4200 Module 3 questions, answered

Where can I find a free OPM 4200 Module 3 sample paper?

The case above weighs New Jersey, Mexico and Taiwan as assembly sites for an e-bike maker.

What is the triple-A supply chain?

Lee's framework holding that the best supply chains are agile, adaptable and aligned.

What is near-shoring?

Moving production to a nearby country, such as Mexico for the U.S. market, to balance cost with speed and control.

Why might the lowest-cost location be the wrong choice?

Long lead times, less control and less flexibility can cost more than the savings, especially for products with uncertain demand.

What does supply chain design decide?

Which activities the firm performs, where facilities are located and how materials flow through the network.