Question: This is supply chain problem Question 1 Advanced Micro (AM) is a global provider of high-performance semiconductor solutions that are designed to help solve some


This is supply chain problem
Question 1 Advanced Micro (AM) is a global provider of high-performance semiconductor solutions that are designed to help solve some of the world's toughest challenges. In 2017, its sales revenue was US$30 billion and it employed over 20,000 people. AM's vision is to enable the world's creators, researchers, inventors, and explorers to transform the lives of those around them through immersive and instinctive computing. The high-performance graphics processing unit (GPU) market is growing and GPU manufacturers are competing with each other on producing higher resolution, faster speed products. The demand of GPUs is erratic and the average product life cycle time is 12 months. AM currently operates two GPU production plants, one in the US and the other in Singapore. It mainly produces two models of GPUs, Rage and Rage Pro. Rage is an entry-level GPU while Rage Pro is a state-of-the-art product launched recently. The following diagram shows the AM's supply chain: AM's US GPU production plant Silicon supplier's warehouse AM's wafer fabrication plant AM's distribution centre AM's Singapore GPU production plant As shown in the above supply chain, AM purchases its key raw material, silicon, from a single supplier. Silicon is shipped directly from the supplier's warehouse to the AM's wafer fabrication plant in the US and the replenishment lead times from the supplier's warehouse to the plant is 5 days. Production of one unit of wafer in the US wafer fabrication plant consumes 0.1 kg of silicon and the wafers produced are delivered to AM's distribution centre (DC) in the US before being distributed to its GPU production plants. One unit of wafer can be used to produce 10 units of Rage or Rage Pro. The replenishment lead time of wafers from the US fabrication plant to the DC is 7 days and the respective delivery lead times from the DC to the US and Singapore production plants are 1 day and 3 days. (c) Suppose that AM is considering forming a strategic alliance to improve the distribution of Rage and Rage Pro. Suggest the most appropriate type of strategic alliance for AM and discuss the advantages and disadvantages of forming such an allianceStep by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
