Referring to the Yale Case, "American Greetings", answer the following questions:

1. What is the business strategy of the cheap cards (e.g., Dollar General business)? What about expensive cards (e.g., Papyrus business)? What are the implications for supply chain strategy?[A]
   1. What are the total costs/card for each card type through the current process, automation, and outsourcing?[B]
2. What is your recommendation for transforming the supply chain? Support your recommendation with facts from the case and frameworks from the course.[C]
3. Quantify the economic consequences of your recommendation (ongoing savings, one-time costs, etc.).
4. Describe the top three implementation issues you would need to manage.[D]

 

A. Refer to the "splintering" concept from the McKinsey article, "Building the Supply Chain of the Future".

B. Analysis of costs should include inbound freight, amortization of capital, and inventory carrying cost (as appropriate)

C. You can neglect implications to the distribution network (to keep things simple)

D. Refer to the "Decision Framework" and "Trouble with Outsourcing" articles