HELP POINTS WILL BE REWARED!! You are managing development of the iToilet and ne
ID: 2248685 • Letter: H
Question
HELP POINTS WILL BE REWARED!!
You are managing development of the iToilet and need to select an implementation technology for the swipe gesture detection controller. Your marketing department has forecast you will need 5,000 units over the lifetime of the product. You have done some shopping around, and found two different solutions that may be reasonable for your project. Each is described below: Structured Application Specific Integrated Circuit (Structured ASIC) .Must pay one-time setup fee of $2,000,000 to the fab . Each controller requires a Structured ASIC chip *Cost is S1.00 per Structured ASIC chip Field Programmable Gate Array (FPGA) .No one-time setup fee as FPGA is a standard product .Each controller requires an FPGA chip Cost is S120.00 per FPGA chip Which implementation technology would you select based on total project cost, and why? Please show your work. At what unit volume would it make sense to select the other implementation technology (in other words, where is the crossover point?) Please show your work.Explanation / Answer
We need 5000 units. If we use ASIC technology the cost is C1= 2000000 + 5000 * 1 dollars = 2005000 dollars.
If we use FPGA technology, the cost is C2 = 120 * 5000 = 600000 dollars.
As C2<C1 we choose FPGA technology.
To find the cross over point we equate the prices of both technologies to see that at what production quantity both technologies become equally competent.
ASIC technology : C1= 2000000 + V*1 where V is the volume of units
FPGA technology : C2=120*V
C1=C2
2000000 + V = 120V
2000000 = 119V
V=16807 units.
Any volume greater than 16807 units makes the other technology more feasible.
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