OMGT2229: Supply Chain Management Strategy Case Study, RMIT, Singapore NVIDIA is headquartered in Santa Clara, California, and became a major force in the computer gaming industry
NVIDIA is headquartered in Santa Clara, California, and became a major force in the computer gaming industry with the launch of the RIVA series of graphics processors in 1997. To date, the company has become the world’s leading graphic card manufacturer with a wide product range. In 2022, the production plant of NVIDIA’s major supplier in Delaware producing the graphic processing units was damaged by a big fire which would negatively impact the production capability of the plant in the immediate future.
The management of NVIDIA must decide to either stay with the supplier in Delaware or source from an alternative supplier in Mexico for the coming three years. In both options, NVIDIA will incur an initial cost (at present value) but expects to get some savings every year.
The expected cost of sourcing a new supplier in Mexico, upgrading its production equipment, and implementing the necessary quality assurance procedures is estimated at $5 million. Once in place, this partnership is expected to yield savings in the next three years as shown in Table 1. The discount rate for this alternative is 3%.
Hire a Professional Essay & Assignment Writer for completing your Academic Assessments
The other alternative is to stay with the current supplier at Delaware for the next three years. The cost to undertake a temporary urgent repair of the damage caused by the fire is estimated at $3 million. Production engineers and risk assessors have estimated the savings of this alternative as shown in Table 2. The discount rate for this alternative is 5%.
- Draw a decision tree in the Excel file to represent the two alternatives being considered. Show all the nodes and the branches with proper labels, probabilities, and expected returns dearly.
- Show clearly how the total present value of each alternative is calculated in separate spreadsheets, one for one alternative.
- Create a comparison sheet using the following format. Based on the findings from (b), which alternative should NVIDIA pursue? Why?
Conduct your own research and find out how the decision tree methodology can be applied to risk analysis in the integrated circuit chip manufacturing industry. As the type of risks in the upstream, midstream, and downstream of an integrated circuit chip supply chain can vary, the tools for risk analysis may be different. You may wish to discuss the application in the different aspects of the supply chain operation based on the uncertainties involved.
At Myassignmenthelp.sg, we pride ourselves on our commitment to customer satisfaction. We believe that every student deserves the best possible help with their academic work, and we are here to provide that help. So whether you need help with a complicated dissertation or a simple assignment, we are here to assist you. Don’t waste any more time struggling with your assignments. Contact Myassignmenthelp.sg today and get the best assignment help from experienced professionals!
- In the month of December, Fruits Pte Ltd made credit sales of $15,000 and a cash sale of $5,000: Accounting Home Work, NUS, Singapore
- MTD111 Isometic drawing Assignment, SUSS, Singapore: Develop a complete Isometric Projection Drawing using as much space on a blank A4 Isometric
- MTD111 Isometic drawing Assignment, SUSS, Singapore: A portable cooking stove – PCS, that may be packed in its own case and has the ability to be in either gas-fuel
- NCO111 Work And Learning In A Changing World Essay, SUSS, Singapore: Conduct A Critical Evaluation Of Your Learning Goals That Engage With The Arguments Expressed
- COMP4104 Cyber Security Assignment, LSBF, Singapore: “TradeX Finance Inc.” Is A Newly Incorporated Finance Organization, With Incorporations Obtained
- ECE316 Practitioner Enquiry And Learning Assignment, SUSS, Singapore: Formulate TWO (2) Related Research Questions Based On The Given Topic, Which Could Be Narrowed Further
- BUSM1137 Human Resource Development Essay, RMIT, Singapore: In this assessment task, you are required to write a short essay of no more than 1500 words to critically discuss
- ANL355 Applied Operations Research Tutor-Marked Assignment, SUSS, Singapore: Steve Young, A Senior Sales Development Representative At A Local Wellness Gift Shop
- CTI304 English-Chinese Translation Of Literary Works Assignment, SUSS, Singapore: Complaints Of Poverty Of Poets Are As Old As Their Art, But I Never Heard That They Wrote The Worse
- Organizational behaviour Report SUSS, Singapore: The project should focus at the possible improvement in the learning process of your life experiences
UP TO 15 % DISCOUNT
Get Your Assignment Completed At Lower Prices