Customization$/$Demand Variabilltr$/8$ Suggly Chain Design

Primo Caf$$ uses the same supply chain processes for all three of its products.

Each month, the company produces $1,505$ Bean Boiler units, $1,050$ Family Man units, and $600$ Caffissimo units.

The same number of Bean Boiler, Family Man, and Caffissimo units are sent to the same retailers each month.

The goal of this supply chain design is to minimize costs by standardizing the process for all three products, so that the exact same number of units are produced and shipped each month.

As the purchasing manager for Primo Cafe, you have noticed some problems with this supply chain approach. For instance, there have been stock outs of the Caffissimo at some retail locations, while at other locations Caffissimo units have been sent back because the retailer still had inventory from the previous month. You think there's a better way.

You work for Marco, the Chief Operations Officer. Marco is a big proponent of the single supply chain structure because he is convinced that standardizing the process is the most efficient way to run his operations. He also thinks that any issues with the retailers is the Marketing department's problem.

You have decided to make some recommendations to Marco about how Primo Caf$$ can improve its supply chain processes. Using the class discussion of customization$/$d Sthand variability and supply chain design, discuss any changes you would recommend$-$and why. Be sure to discuss all three product lines and to support your recommendations with details from the case.