Please Read and Answer the questions in detail at the end The Muenster Pump Company has manufactured high-quality agricultural pumps for over forty years. The firm's only plant is located in the small Midwestern City of Muenster. The company is Muenster's largest employer. Bob Dorf, president of the firm, is the grandson of Emil Dorf, the founder. Bob and his family, along with all key personnel, live in or near the city of Muenster. Cordial relations exist between the firm and the city officials.

Since its founding, the firm has always been as self-sufficient as possible. Shortly after setting up business, Emil Dorf established a foundry to cast pump housings and related items. Today, the foundry provides virtually all of the required pump housings.

Bob's cousin, Terry, is the supply manager for Muenster Pump. After graduating from State University, Terry worked as a supply manager at a large appliance manufacturer in the southwestern corner of the state. However, after two years of life in the big city, Terry returned to Muenster. Bob was delighted to have Terry back in town. He established the position of supply manager by consolidating the buying functions previously performed by himself and other members of the firm. As seen in Exhibit 1, Terry reports to her Uncle Ned, who is the vice president for manufacturing.