Product Overview

This case uses the streamlining of pharmaceutical distribution to explore supply-chain coordination. For years, supply-chain inventory information had been opaque. Then in the early 2000s, pharmaceutical manufacturers and distributors were forced to shift from investment buying to inventory service agreements. Information sharing among channel partners regarding customer demand and inventories was believed to lead to better decision-making, improved inventory turns, and ultimately, better profit margins. The case material provides data for students to assess the impact of shifting away from investment buying.

Learning Objectives

•Identity factors that drive inventory levels •Practice generating data-driven insights through quantitative analysis •Explore how multiple companies in the same supply chain collaborate for mutual benefit