Moon Micro Case Study - Global Supply Chain Management - Economics Assignment Help

Assignment Task:

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? 

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