Lincoln Incorporated's Case

incoln Incorporated is an aerospace company that was founded in 1986 and manufactures products commonly used in the assembly of commercial airliners.

Lincoln Incorporated’s customer base largely consists of commercial airlines that are upgrading and/or maintaining their fleet(s) to meet or exceed governmental compliance regulations as set forth by the FAA. Lincoln Incorporated offers a wide variety of commercial airline parts, with the most popular being their line of pressure bulkheads.

Industry wide there has been sustained growth as well as a steadily increasing demand for quality replacement parts to keep aging fleets air-worthy and compliant. Lincoln Incorporated’s reputation for producing quality products in addition to their continued ability to satisfy growing demand has landed them in the enviable position of becoming a market leader. Due to Lincoln’s continued success, there has recently been a global spike in demand for their top-selling product line, the pressure bulkheads.

Lincoln Incorporated’s current manufacturing plant(s) are located in Austin, Texas and Paris, France, but are quickly approaching their production limits. What we are going to review are a series of calculations to determine what the best course of action is with regards to fostering Lincoln Incorporated’s continued growth and future business expansion opportunities.

Due to its reputation for high quality commercial airline parts and competitive pricing strategies, Lincoln Incorporated has landed lucrative long-term contracts with many of the top commercial airlines worldwide as their preferred distributor of commercial-grade bulkheads. The parts produced in the aerospace division at Lincoln are often times preferred above even OEM parts direct from the manufacturer(s). While the increase in business has been good for Lincoln, it also has the management team re-evaluating Lincoln’s production capacity and its ability to meet and sustain the production schedules that have been brought about as a result of the new