Sales build during thequarter. Given existing inventories for components and finished goods, whichwere part of the plan for the prior quarter, there is time to send the itemsvia ocean. Then as the sales and build plans change during the quarter, Nittany shipsto Europe now via sea-air. This reduces the transit time with ocean, yet isnot as expensive as air freight. Then as the quarter starts to close,demand breaks loose.
Time is urgent.
Now Nittany ships its units via airfreight. They did similar with the U.S. requirements, shifting between seafreight and air freight for the units. To have this responsiveness, while managing costs, the logistics plan forthe shipments from the Philippines to Europe and the U.S. is multi-modal. During the quarter, Nittany ships to Germany via sea freight. Sales buildduring the quarter.