The Bean Boiler is Primo Caf's most basic model. The main materials used in manufacturing the Bean Boiler are aluminum and plastic. There are lots of suppliers for these materials. At present, Primo Caf's total cost for producing a Bean Boiler is $13 per unit and the product is competitively priced at $20 per unit. There are lots of other coffee makers that are very similar to the Bean Boiler on the market. Still, sales of the Bean Boiler are very stable. The company reliably sells 24,625 to 25,375 units of this product per month. The Family Man is Primo Caf's mid-market offering. Primo Caf manufactures most of the Family Man in-house, but buys the glass pot and the electronics that control the on/off function and the timer. At present, final assembly of the inhouse manufactured parts and the purchased sub-components occurs at Primo Caf's facility in Grand Rapids. Total cost for producing the Family Man is currently $32 per unit and each unit is sold for \$34.99. The Family Man's sleek, artistic design and range of unique colors helps to distinguish it from a wide selection of similar products offered by competitors. Prices for direct competitors range from $25 to $45. Sales of the Family Man range from 19,400 to 20,600 units per month. The Caffissimg is Primo Caf's high-end offering. Primo Caf produces the external metal parts of the casing for the Caffissime in-house, but buys all of the important sub-components from external suppliers. The most important sub-components for the Caffissime are the gauges that regulate the temperature and pressure of the water as it is forced through the coffee grounds. The proper working of these gauges ensure that the Caffissimg produces a perfect cup of coffee at brewing. The Caffissimo's design is a closely held company secret. The machine has won industry awards both in terms of its coffee making process and its external looks. Currently, the Caffissimo costs Ils for $600. Because of the relatively high price and unique design, demand for t to predict. Over the past year, demand has ranged from 8,500 to 11,500 units ou are the supply chain manager at Primo Caf. Marco, the chief operating officer, is your boss. From our 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 edesign initially but is getting more comfortable with the new way of doing things after seeing the results. rimo Cafe is developing a new product and expects to launch it into the marketplace in two years. Marco las asked that you join the new product development team to design the supply chain and select suppliers or this product. The product is: - Code Name "AM": Family Man is doing well in its segment, but Primo Caf leadership believes another entry in the mid-market is necessary. AM will fulfill a market segment not met by other Primo Cafe products, with an estimated monthly volume of 14,500 to 15,500 units. Cost is estimated at $30 and price is estimated at $34. Marketing does not believe that AM will interfere with Family Man's sales volume (that is, Family Man's volume is projected to remain the same). While the Family Man is assembled with over 500 unique components, it has been designed in 6 different sub-assemblies (so, a modular design). Engineering believes that they can meet AM's product design intent by changing 2 of the sub-assemblies, and continue to use FM's 4 other subassemblies on AM. You believe that the 2 new sub-assemblies could be added at the end of production. Based on material presented in the class, answer the following questions. 1. Describe the type of supply chain design that would be most appropriate for this product. Explain why your reasoning. 2. Given the type of supply chain design you described in Question 1, explain what the primary goals should be for each of the functional areas of the supply chain. a. Manufacturing: What should be the primary focus as Primo is producing this product? b. Logistics: What should be the primary focus as Primo is distributing this product? c. Purchasing: What should be the main....fogus as Primo is purchasing materials/components for this product? 3. Marco is still struggling with customer segmentation of supply chains. You tell Marco that on the demand side of the business, segmenting customers would improve customer service. And on the supply side of the business, you tell him that strategic sourcing can lower costs. Marco's question is: Why should you, as the Supply Chain Manager, focus on the profitability of products, but instead, just focus on product costs