Posted: October 3rd, 2022

Qualitatively, evaluate the impact O&M’s cost-plus pricing has on distributors, customers, and suppliers.

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Analysis the case and answer the following questions.
1.Qualitatively, evaluate the impact O&M’s cost-plus pricing has on distributors, customers, and
suppliers.
2.What effect will ABP have on customer behavior? Would you expect different responses by
customers? To focus your thoughts download the spreadsheet titled O&M Data and Numerical
Exercise. Consider the example listed in sheet named “Numerical Exercise” that asks you to compare
the impact of ABP on two customers. To solve the numerical exercise, you may use the template
provided in sheet named “Solution Template”. Would Alpha & Beta hospital respond differently to
ABP and why?
3. What are the risks associated with ABP for Owens and Minor?

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