Question 1Advanced Micro (AM) is a global provider of high-performance semiconductor solutions that aredesigned to help solve some of the world's toughest challenges. In 2017, its sales revenue was US$30billion 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 andinstinctive computing.The high-performance graphics processing unit (GPU) market is growing and GPU manufacturersare competing with each other on producing higher resolution, faster speed products. The demand ofGPUS 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. Itmainly produces two models of GPUS, Rage and Rage Pro. Rage is an entry-level GPU while RagePro is a state-of-the-art product launched recently.The following diagram shows the AM's supply chain:AM's US GPUproduction plantSiliconAM's waferAM'ssupplier'swarehousefabricationdistributionplantcentreAM's Singapore GPUproduction plantAs shown in the above supply chain, AM purchases its key raw material, silicon, from a singlesupplier. Silicon is shipped directly from the supplier's warehouse to the AM's wafer fabrication plantin 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 thewafers produced are delivered to AM's distribution centre (DC) in the US before being distributed toits 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 therespective delivery lead times from the DC to the US and Singapore production plants are 1 day and3 days.Discuss the order winners of Rage and Rage Pro, and identify appropriate logistics prioritiesfor its distribution network.(a)(b)Should AM apply the focused factory concept in its GPU production by centralizing theproduction of Rage in only one of its production plants? Why?

The supply chain management is the aspect of production management that is concerned with moving…

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: Silicon supplier's warehouse AM's wafer fabrication plant AM's distribution centre (b) AM's US GPU production plant 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. (a) Discuss the order winners of Rage and Rage Pro, and identify appropriate logistics priorities for its distribution network. Should AM apply the focused factory concept in its GPU production by centralizing the production of Rage in only one of its production plants? Why?