From your previous recommendations, Primo Caf$$ has designed supply chains specifically for each product $($Bean Boiler, Family Man, and Caffissimo$)$ based on customer segmentation. Marco struggled with the redesign initially but is getting more comfortable with the new way of doing things after seeing the results.

Fortunately, Primo Caf$$s Marketing Department found out that The Magnifico$$s coffee taste is inferior to the Caffissimo. The parameters that Engineering tested are not all relevant to the taste of coffee, so the concerns regarding The Magnifico$$s superiority are misleading. The Caffissimo is still the industry leader!

However, Primo Caf$$s management team still wants to develop a new product to complement the Caffissimo. Primo Caf$$ expects to launch it in the marketplace within the next two years. Marco has asked that you join him in the new product development team to design the supply chain and select suppliers for this product. The product is:

$$ Code Name $$Nirvana$$: Nirvana will be a derivative of Caffissimo $($some of Caffissimo$$s modules will be used for Nirvana$),$ but it will also have many new high$-$tech components. Nirvana will be a very high$-$end machine and will complement the current Caffissimo product $($therefore will not decrease Caffissimo$$s unit sales$).$ The expected price is between $$800-$ $$900.$ Sales volume is expected to be lower than Caffissimo, but Marketing is not sure. Some Market research suggests that volumes could actually exceed Caffissimo. Initial cost estimates are $$400-$ $$425,$ so a high margin product.

Using Week $2$s Supply Chain Design information and terminology, answer the following questions.

$1.$ Describe the type of supply chain design that would be most appropriate for Nirvana.

$2.$ Explain what the primary goals should be for each of the functional areas of the Nirvana supply chain.

a$.$ Manufacturing: How should Manufacturing be designed for production of Nirvana?

b$.$ Purchasing: What should be Purchasing$$s focus when selecting suppliers for this product?