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Meditech Surgical Case Analysis Essay example

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Meditech Surgical Case Analysis Paper Strategic Supply Chain Management Meditech is a leader in the endoscopic surgical instrument market. The company manufactures and market low cost endoscopy surgical equipment to hospitals and independent surgeons. The company's distribution operation is arranged and managed from a central storage warehouse that ships its products to domestic and international affiliates. The organization have been experiencing a good customer service experience in the past, however, lately customers have expressed concerns with the time products are being delivered to them. Due to the nature of the industry, the delivery of surgical equipment on time is extremely important. The on time delivery of products …show more content…

Another problem of Meditech is communications. There is not enough communications between main operations departments in the company; this is causing information to become distorted as it makes its way through the supply chain line. The lack of communication and information increases the firm's lead to demand variation as orders or demand is being process through the supply chain systems and departments. In consequence, distributors are feeling the effect by long waiting periods of time, thus this also causes them to place larger orders in an effort to help them compensate the waiting time. The panic ordering by distributors are caused by lack of communications and in turn lead into the problem of the bullwhip effect. Meditech's current distribuition system is inefficient and obviously is causing an inflated demand of products. There is not enough information being shared among distributors and Medtech's operations. Each distributor receives orders from different regional warehouse, which makes it hard to see the bullwhip effect. The organization's forecasting system is also confronting serious problems. The current organization's forecast system is determined by marketing and finance departments on an annual basis. The annual forecast is then broken down into monthly and weekly forecasts and is frequently adjusted by Central Planners according to market trends.

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