1. Discuss the various possibilities for inventory ownership policies in a VMI arrangement. What are the advantages and disadvantages of each of these policies?
2. Analyze component procurement strategy as a function of the product life cycle. Specifically, identify the appropriate strategy when a product is at growth stage (introduction), maturity (steady state), and end-of-life.
3. Consider a consumer product manufacturer like Procter & Gamble. Analyze whether the company should outsource the production of products such as shampoo. Is your recommendation consistent with P&G strategy? If not, explain the reason for the difference between your strategy and what is done by P&G.