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Sources of inefficiencies in the flu vaccine supply chain

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    Assignment ID: FG133233244


    Discuss potential sources of inefficiencies in the flu vaccine supply chain. What are potential structural reasons for the better performance of retail pharmacies compared to healthcare delivery systems in managing the flu vaccine supply chain? Which supply contract should NorthShore choose?

    a. What is the expected marginal cost of stocking too much or too little flu vaccine for NorthShore? (assume no salvage value other than vaccine-return terms guaranteed by the supplier, if any?)

    b. How would you quantify the uncertainty associated with the timing and quantity of vaccine shipment received by NorthShore based on historic date?

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