Answer number 1 :

Answer number 2 :
In the first stage need to identify the raw material before the process the tier 2 supplier this
tier include all the raw material from the bicycle assembly. After that tier 1 supplier is include
the company that process the raw material to be a part form the bicycle company in this I take
the important part for the bicycle like structure, brake, wheel, transmission, and accessories.
After the part is done and can be shipment to the company that assembly the bicycle it self
before the distribution to the distributor the bicycle company have not the process in direct to
the end customer they need the distribution to distribute the product it self. In the bike
assembly company there is the process to assembly the bicycle and also keep the quality of
the product. After that need the shipment of the bike in the various place like in the sport
store, mass market, and independent bike distribution. And in the las the bike will be on the
end customer.

Answer number 3
In the scope of the supply chain from the tier 2 supplier until in the end of the customer. Flow
of the process from tier 2 until the end customer is the scope of supply chain but the scope of
the logistic are from 1 tier before and after the company produce. So in this diagram that the
logistic scope are from tier 2 supplier before the company until the distributor. This is the
different between the supply chain scope and logistic scope. Even the supply chain
management scope is the improvement from the logistic scope. So the scope would be very
different in the supplier and end customer. The supply chain would be learn and identify all
of the process from the beginning of the raw material until the end of customer.
Answer number 4
Postponement is defined as a strategy that intentionally delays the execution of a task, instead
of starting it with incomplete or unreliable information input. Example : Consider a common
case of postponement involving a fast food restaurant. BurgerKing started a trend with the
"have it your way" marketing jingle as a way of advertising the value of getting a customized
sandwich - fast! This strategy ensured the customer that each order would be made
individually at the time of purchase – not taken from a batch of pre-made products. In a
restaurant, ingredients are ordered in aggregate because it is not known what the final
customer orders will be. Ingredients that are common to all sandwiches, like buns and lettuce,
are ordered based on a total forecast of sales for each type of sandwich. Having a bun and
lettuce ready and waiting for final assembly is the "platform" for the sandwich. The rest of
the ingredients, like cheese, meat, and pickles, are components that are specific to each end
product. If more of one type of sandwich is ordered or less of another, the total number of
buns is not affected by this deviation in demand, however, the amount of cheese would be. It
is much less costly to throw out a piece of cheese and use the platform for another order than
to throw out an entire sandwich. At Burger King, inventory is managed at the aggregate level.
There are four choices of meat and three different types of bun. In addition to buns and meat,
there is the choice of cheese, bacon, lettuce, tomato, pickles and onion. In total Burger King
can produce 768 different sandwiches. They know that it is costly to try and predict
individual customer's preferences so they aggregate orders into common platforms which
consist of a bun, patty (chicken, beef, fish, or veggie) and lettuce, reducing the options from
768 to 128. Once common components are paired together in a platform the number of
options reduces dramatically because variety is determined by multiplying the number of
options together. Once the platform is specified by a customer the rest of the sandwich is
made-to-order. This strategy works well for restaurants like Subway and small lunch counter
establishments, but is not suited for places like McDonalds where customers expect their
sandwich ready when they arrive. Customers usually do not custom order sandwiches at
McDonalds which is why they can produce orders quickly from a batch. The benefit from this
strategy is the more variety, inventory reduction and inventory cost reduction.

Answer number 5

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- 40000 -7620 -15120 -22620
 purchase)
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.