Problem
Make sure that you have thoroughly proofread the paper for writing and typographical errors. I expect the paper to be 3 to 5 pages in length. The more detail you put in your answers the higher the grade is likely to be.
Many supply chains evolve over time. For example, consider a memory chip supply chain. Production strategies may change during different stages of the product life cycle. When a new memory chip is introduced, price is high, yield is low, and production capacity is tight, and the availability of the product is important. Consequently, production is usually done at plants close to markets, and the management focuses on increasing yield, reducing the number of production disruptions, and fully utilizing capacity. When the product matures, however, its price drops and demand is stabilized for a period of time, so minimizing production cost moves to center stage. To reduce costs, production may be outsourced to overseas factories, where labor and materials are much cheaper.
Task
• Describe the steps you would go through in analyzing whether a memory chip currently being produced in Santa Monica, California for a computer manufacturer in the Silicone Valley should be outsourced to a location somewhere in Asia.
• What factors would you consider in this analysis? Be thorough in considering all of the potential factors that might affect the outcome of your decision.
• Describe the effect on your supply chain if the decision was made to offshore the sourcing of this component to Asia. Consider transportation, inventory, management, and other costs that would be affected. Also consider the risks involved in sourcing overseas.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.