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The Definitive Guide to Modern Supply Chain Management (Collection) by Sara Lewis, Michael Watson, John Bell, Thomas J. Goldsby, Peter Cacioppi, Jay Jayaraman, Chuck Munson, Chad W. Autry, Mark A. Moon

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Case 15. Sherman’s Supply Chain Challenge: Stopping the Retailer from Overcharging for Soda

Chuck Munson

Washington State University, Pullman, Washington, USA; munson@wsu.edu

Shawn Sherman, owner of Sherman’s Soda, has reached his wits’ end. As producer of the region’s most popular liquid beverage, Sherman’s Stay-Awake Soda, Shawn has a supply and demand problem. State U. college students, comprising his largest customer base, have been complaining about his high soda prices; meanwhile, Shawn is stuck with excess capacity and excess inventory because his product isn’t moving fast enough.

A couple of years ago, Shawn signed an agreement with a regional grocery chain to be the exclusive retailer for Stay-Awake Soda. At the time, Shawn was happy ...

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