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”


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