Delivery Model Of Supply Chain

1860 Words 8 Pages
Register to read the introduction… This is the stage where care id actually received by patients and the billing system is set up. This is the part that all the planning is put to work and when the fine-tuning takes place. It is this part when billing cycles are improved and customer satisfaction is closely monitored. The supply chain manager plays a critical role in this area because this is also the stage where you will find out how well the new system works at keeping supplies on hand as well as how it works with keeping costs of high-end devices doctors prefer. According to Susanna Moon (2004), "…doctors have long ruled the hospital supply chain…. For example, 30 doctors working at the same hospital can often demand 30 different products for the same procedure…. [Administrators are] questioning product differences, working more closely with clinicians and applying practices such as value analysis to try to determine the true value of a product and whether any distinctions merit a …show more content…
Then, a reorder point (ROP) is determined. This is the lowest point at which inventory levels can fall to before the organization could run out before the new order is received. When the supplies fall to this level, the EOQ is then ordered from the supplier. The problem with this system is that it does not allow for defective supplies or the possibility of receipt of the wrong supplies. When using this system, the organization has to be able to hold a lot of stock. If there is no room to store them properly, the organization is wasting space and money on supplies that it cannot hold – not to mention the cost of holding these items, which can amount to thousands of dollars per …show more content…
This is described by Laith Abuhilal, Ghaith Rabadi, Andres Sousa-Poza (2006): "…orders arrive with a stochastic number of required units the same way explained for the MRP stationary model. The retailer maintains a finished goods stock sufficient for the demand during lead-time, plus a safety stock required to ensure a 95% service level…. The retailer uses JIT supplier-Kanban-cards, where, as demand arrives, an immediate order, of the same amount, is propagated upstream to the manufacturer. The manufacturer also maintains a finished goods inventory sufficient to satisfy 95% service level, and each Kanban card is attached to a product unit. The units pulled from the finished goods store trigger the pulling of units from the machines through use of Kanban cards. The demand is transferred upstream, again using Kanban cards, from the machines to the raw materials store, and from raw materials store to the supplier". Again, even though this is described in a retail setting, it would not be hard to implement in a hospital

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