Answer number 1

In the picture show that computer shop should be a distributor product from the big company
that produce the hardware from computer it self, computer shop just will managing about the
shipping of the product and push boundary to vendor or company to produce the product. In
the supply chain computer shop can be company also with the first level supplier is company
produce hardware like, ASUS,MSI, dell and so on but before the there are two producer of
computer that monopoly the hardware it self for the processor they are INTEL and AMD in
another side the graphic card monopoly whit AMF and Nvidia. This three company are supplier
before the company that produce the hardware before the product come to the computer shop.
The pull boundary happen when the end customer of computer shop asking for the product that
sold out in the inventory. So the end customer made the computer shop pull boundary to
supplier
Answer number 2
Facilities, another logistics driver, are the actual physical locations in the supply chain network
where the product is stored, assembled, or manufactured. A facility designed as a flexible stand
quickly responds to market demands by retrofitting to produce different models or products,
while a dedicated facility cannot find a facility. Proximity to the market increases
responsiveness at the expense of diminishing economies of scale that could be achieved with a
central location. An under capacity facility will be less responsive than a sufficiently sized or
overcapacity facility.
Answer number 3
Finding NPV:
Year 0 Year 1 Year 2 Year 3
Demand 100000 200000 300000

Purchase cost 0,2 20000 40000 60000

Shipping and Handling 0,02 2000 4000 6000
Inventory Handling 0,005 500 1000 1500
Administrative Monthly 10 120 120 120
Total Purchase 22620 45120 67620

Molding Machine 40000

Direct materials 0,05 5000 10000 15000
Direct labour 0,05 5000 10000 15000
Indirect labour 0,02 2000 4000 6000
Overhead 0,03 3000 6000 9000
Total Manufacturing Cost 40000 15000 30000 45000

Cost of capital 8%
Total (manufacturing-purchase) 40000 -7620 -15120 -22620
Discount factors 1 0,9259 0,8573 0,7938
NPV 40000 -7055,36 -12962,4 -17955,8

Total NPV 2026,51

After the calculation we get the Net present Value is positive so better the company accept the
bid from the Taiwanese supplier.