You are a team of consultants hired by Sattva eTech to help the company select a contract
Question:
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.
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?