Question 1 is based on case study

please answer the following questions

SECTION A [40 MARKS] Read the case study below and answer AlL the questions that follow. ACM Electronics Component Manufacturer ACM is aa electronics component manutacturer that has been located in Singapore since 2000, supplyhg original equipment manuacturers (OEMs) with quality componens. in the past several years. ACM has experienced increasing pressire from other mandactirers located in other countries. In Singapore, whle labor remains quine inexpensive. here has been a relatvely sleady increase in iabor costs. In additon. billy costs anost nolably water and energy costs have led the fim to contemplafe moving operations elsewhere in Asla to make the fim more compettive. ACM remains proftable, but margins have shrunk, and management is interested in enturing that the fim tomains compettive against other component manufacturers in the medium tem to long term. A senior management team has formed a commitee to resch a decision regarding possble relocation. The committee has identfed wo addtoral bcations as possele candidates for reiocation: Hong Kong (People's Republic of China PRC|) and Kuching Malaysa. Hong Kong's main attractions stam from the fact that since 1997 , when its sovereignty was transfered back so the PRC, labor costs have decreased as acosss to labor has increased. Hong Kong enjoys a large seapont and very good transportation inteastucture, and this is important in moving raw materials and moving oul finished components to customers. Preserfly, the customers are geographicaly dspersed, making access bo a seaport very important in delivering products to customers. Serior managentent beleves that an increasing number of OEMs will move to the PAC in the next several years, as has been the ease in the past decade. This will only increase the attractiveness of locating the manufacturing taciliy in Hong Kong. Kuching is located in the Malaysan province of Sarawak on the island of Borreo. A is fourth-lagest oily in Malaysia and home to a population of around 650,000 . Several point make Kuching atthactive bo the tebcaton commitee. Frst, boating here would provide acoess to natural resources and other production lecuts. Second, the transportation infrastructure is good. and the city hosts a devp seaport for moving raw materals in and fnishod goods but. That said, the port is not as large or acoessitle as those of Hong Kong or Singapore, and several comentise members have euprested concem about the frequency of ship vist to Kuching. If the port does tol receve regular servioe from container ships, tanspoctason costs to ship component to OEls wit increase. Finally, another seling point is that labor is relafively stable and inespensive in Malaysa. The commillee has contacked the govemment of Singopore to elict possible incentues to nol telocate to another counsy. Singapore is offering a 5-year exemption on taxes for ACM if the plact temains in Singapore. The government will also assist by partaly subsidiang labor, water, and energy costs for 5 years. Commitlee members realue that the Singapore plant, which has been operating for years, has already been amodized, and opening a new plart would requie additonal capial costs. That said, opening a sew lactory would also proide an opportunity to upgrade production equipment to more productive and energy eficient ahematves. Extracted from (Heluer and Render, 2013) 1.1 With reference to the case study provided, evaluate each of the potential locations that ACM can be considered. (12 marks) 1.2 Given your extensive knowledge in operations management examine the other essential variables that are not mentioned in the case study that might play an important role in the committee's decision in selecting an ideal location. (15 marks) 1.3 Considering that this is a long term, strategic decision, discuss the factors that might change in the next 10 to 20 years and how the possibility of such changes influences the decision. (13 marks)