Meditech surgurical case study Term Paper Example | Topics and Well Written Essays - 1000 words - 1

Meditech surgurical case study - Term Paper Example From all indications, it is clear that Meditech used cost-effective supply chain instead of using a responsive supply chain as it would have more useful when it comes to high innovative products considerations. The supply chain used by the company was customer service oriented and hence the delay. The company has also been facing problems in poor service quality due to strain in its production capacity. The strain in its production capacity made the company experience constant shortage in the introduction of new improved products. It also had problems with high finished goods inventory. It is important for the company to plan on the introduction of a new cycle through the three phases of manufacturing and this should be done two months before the products is marketed to avoid any shortages in the market (Leeman, 150). a. The introduction of new products in Meditech Surgical were totally unplanned for and was done without properly strategizing on it supply chain and production schedules. This was the reason why the arrival of net order in the company was more than its finished goods (FG) inventory. Lack of proper strategies in the introduction of new products led to underestimated productions hence delayed delivery of orders. b. Faulty forecasting and mechanical techniques in the company resulted into a wrong prediction which then resulted in faulty targets (Leeman, 150). The company has had a poor ability to forecast the demand for its new products which then led to underestimation in the new product production. c. Finished goods inventory in the company is almost 40% above the desired levels. High level of finished goods inventory is a clear indication that the goods are not moving in the required rate and that customer orders are not being processed within the stipulated time. d. Meditech Surgical has long organizational structure