1.What are the services rendered by the distributor to manufacturers and hospitals?

1)How has the nature of distribution changed over time?

2)What is the value-added by O&M?

2.Evaluate the impact cost-plus pricing has on distributors, customers and suppliers

3.What effect will ABP have on customer behavior?

4.Explain Exhibit 5. How does the pricing matrix work?

1)How do the costs in Exhibit 5 correspond to the costs shown in the customer profitability statement in Exhibit 4?

2)Why doesn't the matrix comprise all the costs shown in Exhibit 4?

5.What are the obstacles to successful implementation of ABP at Ideal? How would you address these obstacles?

6.What type of customer will adopt ABP first?

7.How difficult or easy is it for O&M's rivals to adopt ABP?

8.What are the risks associated with ABP for Owens & Minor?

9.Work through the Owens and Minor numerical example posted on Blackboard by filling in the template provided.