Supply Chain Management

MEDITECH SURGICAL

REPORT:

Meditech surgical major production is the endoscopic surgical equipment and this company was spun out of its parent company Largo Health Care Company. The methods of operations followed by Meditech are assembly, packaging, sterilizing. The endoscopic surgery had very small incisions and as a result endoscopic equipment had a huge demand. Meditech surgical stiff competitor was National Medical Corporation and they had both domestic supplies through the warehouses and also international supplies. Customer dissatisfaction because of delay in the product deliveries was reported to Dan Franklin the Manager of Customer service and Production. This is because of the drop in the production rate. For a health care industry this customer dissatisfaction was fatal.

The technique followed by Meditech is new products with innovation and existing products. Because of the panic orders made by the warehouses that deals the domestic and international distributions of Meditech once the new product is launched there is over production of it. Production of the new product that has to be produced is slowed down as the over production got the inventory rise up and get stocked. The graphs clearly suggest that the net inventory is more than what the needs are. This is clearly because of the panic orders done by the dealers to meet their future requirements. Probably Meditech should have stabilized the product production and get done with the present production before the new product operations really set in.

Before launching a new product Meditech can well wait for a while and stabilize with the existing production. This would reduce the stock stagnation in the inventory to good extent. That in turn will give an idea about what has to be done in the next product. Panic orders can be avoided only by careful handling of the customers by suggesting tem the right quantity that would be needed and also taking the production rate into consideration.