Supply Chain Partners: Virginia Mason and Owens & Minor (A)

Answer the following questions to the case study,

1. What is your evaluation of the Total Supply Chain Cost

(TSCC) program developed by Owens & Minor and

Virginia Mason?

2. What are the advantages and disadvantages of cost-plus

pricing relative to the TSCC pricing program?

3. How does Virginia Mason’s lean philosophy affect the

partnership?

4. What changes to the TSCC contract would you approve?

5. What changes to the TSCC contract would you propose?