What are some major nonfinancial uncertainties that a company should consider when making decisions on where to source product?
economics
Description
For Global Supply Chain Management Module
1.
What are some major nonfinancial uncertainties
that a company should consider when making decisions on where to source
product?
2.
Given the current crisis in supply chains, how
will you re-structure your supply chains. (Use your firm as a template)
3.
What are the biggest challenges of managing a
global supply chain?
4.
What are the Geo Political Challenges for a
global supply chain manager? How will you deal with them?
5.
What are the major financial uncertainties faced
by an electronic components manufacturer in US deciding whether to build a
plant in India, Mexico or the United States?
6. Moon
Micro is a small manufacturer of servers that currently builds its entire
product in Santa Clara, California. As the market for servers has grown
dramatically, the Santa Clara plant has reached capacity of 10,000 servers per
year. Moon is considering two options to increase its capacity. The first
option is to add 10,000 units of capacity to the Santa Clara plant at an
annualized fixed cost of $10,000,000 plus $500 labor per server. The second
option is to have Molectron, an independent assembler, manufacture servers for
Moon at a cost of $2,000 for each server (excluding raw materials cost). Raw
materials cost $8,000 per server, and Moon sells each server for $15,000. Moon
must make this decision for a two-year time horizon. During each year, demand
for Moon servers has an 80 percent chance of increasing 50 percent from the
year before and a 20 percent chance of remaining the same as the year before.
Molectron’s prices may change as well. They are fixed for the first year but
have a 50 percent chance of increasing 20 percent in the second year and a 50
percent chance of remaining where they are.
Use a decision
tree to determine whether Moon should add capacity to its Santa Clara plant or
if it should outsource to Molectron. What are some other factors that would
affect this decision that we have not discussed?
Case Study:
Please analyze the BioPharma, Inc Case study in your reading – “Designing
Global Supply Chain Networks.pdf”
