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 to only ...
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