Professional Documents
Culture Documents
Supply Chain
About the Company
Parent Company
Product
Primary Competitor
• Old products were updated with innovative features and presented to the
market as new products.
• Poor service Delivery - customers had to wait over six week to have their
orders delivered.
Distribution
• Primary Channels
Domestic Dealers
Primarily for domestic sales
Order and receive products from multiple
manufacturers
Independent and autonomous entities
International Affiliates
Wholly owned subsidiaries of Largo Healthcare
Product shipping throughout the country
International affiliates submit orders to Meditech and
Meditech fills them with available product.
Internal Operations
Assembly
• Manually Intensive
• Components parts placed in Inventory after Quality Assurance
• Run by a team of cross-trained production workers
• Typical cycle time – 2weeks
• Lead time – 2-16 weeks
Packaging
• Using several large packaging machines
• Enough capacity, has not restricted output
Sterilization
• Using a large cobalt radiation sterilizer
• Can sterilize as much product as will fit inside its four walls.
• Capacity limitations not a problem
Operations Organization
Production Scheduling and Planning
Forecast
• Annual forecast during fourth quarter of each fiscal year.
• Monthly forecast based on annual forecast
Assembly Planning
MRP System
• Monthly forecast
• Lead time for assembly, packaging & sterilization
• Current parts, bulk, and finished goods inventory levels.
• Despite the high levels of inventory, the actual service level over the
previous years were disappointing
Meditech does not have separate forecast for new products. It goes from the yearly
forecast schedule
Every time a new product was introduced it resulted in serious supply problems[2-16
weeks] which in turn resulted in the dissatisfaction of customer due to poor service
resulting from each product introduction.
Meditech gives the impression that they were using a cost-effective supply chain,
instead of a responsiveness supply chain that they should have been using considering
highly innovative products.
They should plan a new introduction cycle two months before the sales force starts
marketing the product
Q1)Problems in introducing All
products
Meditech has too many products to be efficient at manufacturing from one facility.