Case Study Analysis and Solutions

Case ID: 110063

Abstract:
Case Solution & Analysis for Supply Chain Partners: Virginia Mason and Owens & Minor (A) (Abridged) by V.G. Narayanan, Lisa Brem
Owens & Minor (O&M) performed lean inventory services for Virginia Mason (VM) as its alpha vendor, but the outdated industry pricing model created perverse incentives and could not capture O&M's costs. Together, O&M and VM created an activity-based pricing model called the total supply chain costs (TSCC), which incented both companies to be more efficient and to streamline their distribution activities. After beta testing the TSCC for one year, VM's Daniel Borunda and O&M's Michael Stefanic believed that TSCC was a better and more cost-effective pricing model, but could they convince their companies to continue to invest in TSCC?

Keywords:
Activity-based costing, Supply chain management, Supply Chain Partners Virginia Mason and Owens & Minor (A) Abridged Case Solution

Click Here to place your order

OR

Contact us directly at ordercasesolutions@gmail.com if you want to solve the above case.