You are a team of consultants hired by Sattva eTech to help the company select a contract structure for their AC/DC power module. You will need to qualitatively evaluate Sattva’s supply chain and operational strategy and support your analysis with statistical data analysis using the newsvendor model. Demand over 4 years follows a normal distribution with a standard deviation.
1. As you think about the problem statement, identify what are symptom(s) and what is the root cause of their reason to re-evaluate the type of supplier contract that is most in alignment with the company priorities.
2. Your analysis should include an analysis of Sattva eTech’s supply chain strategy. What kind of product, market, and supply chain structure does Sattva etech have. what is Sattva’s CVP to their customers? Secondly, address strategically why or if inventory reduction aligns with that supply chain strategy. Should Sattva eTech improve its supply chain framework to better meet its customer’s CVP?
