(Solved): The ACME Corporation is a manufacturer and seller of electronic testing and switching equipment an ...

The ACME Corporation is a manufacturer and seller of electronic testing and switching equipment and sells direct to businesses and on the internet. Their supply chain is depicted below, at a high level. Inbound Pack & Supplier Sub-Assembl y Final Assembly Testing DC Ship Acme has three major product lines that are run as separate businesses, with several supply chain functions is shared services. The product lines are the P60, the N20, and the M40. ? P60, network storage product (major markets – computer equipment) • N20 electronic range finder (major markets - automotive, marine) • N20 component - C100 • M40, switching product (major markets - network industry) o M40 component - C400 Acme has a major supplier (Company X) for its surface-mounted boards and the supplier is located in southern China. Acme has sole-sourced from this supplier because of the economies of scale and cost advantages it can obtain. Recently, Acme's CEO has become worried about the threat of trade restrictions and tariffs which could raise costs and adversely affect supply, and he has asked his COO to take some risk mitigation actions. The COO's best strategic option is: O Sending Quality Control and Process Engineers to Company X to reduce the material and manufacturing cost in case of a tariff increase Obtaining another, but more expensive, source located 100 miles from the existing supplier to split the supply O Finding another source in another country with no threat of trade restrictions, for some percentage of its supply in order to provide redundancy