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Meditech Surgical (Pages 18 25 in the textbook)

1. What are the main problems faced by Meditech Surgical? (4 8 sentences) Ans: Meditech is primarily dealing with growing customer dissatisfaction as consumer demands are not entertained in stipulated time. This is a clear inefficiency of Meditechs supply chain and production planning. Poor service quality because of production capacity strain is the concern of Meditech Surgical. With each introduction of new improved product, it experience constant shortage . Moreover, there is also problem with high finished goods inventory level s.

2. Identify at least 6 causes of the problems faced by Meditech Surgical. (6 8 sentences) Ans: Causes of problems faced by Meditech Surgical are:1.) Totally unplanned introduction of new product without properly strategizing its production and supply chain schedules. 2.) Mechanical & faulty forecasting techniques results in wrong prediction resulting in faulty targets. 3.) Long organization structure including of many level hierarchy resulting in large time in movement between hierarchy. 4.) Finished goods inventory level is almost 40% above the desired level. 5.) Because of poor reputation and service quality in fulfilling the demands by Meditech Surgicals , it also have to deal with Panic Ordering. 6.) Long processing time and cycle time of each stage , results in long throughput time and hence productivity gets affected leading to inefficient production of demanded orders.

Propose at least 4 solutions that may help solve the problems faced by Meditech Surgical. (4 6 sentences) Ans: Solutions which could help Meditech Surgicals to better manage the problem of meeting demand & supply and hence improve service qualities are: a.) Before introducing a new product in market to customer ,roperly strategize its production plan and supply chain schedules. b.) Improving forecasting methods with the help of introduction of more efficient software based forecasting modules for more accurate forecasting. c.) OP/OQ should be changed, increasing the OQ(order quantity) and increasing the OP(order point) is very necessary so that larger demand can be met withing stipulated amount of time. d.) Finished goods inventory level should be reduced to around 35-40%. e.) Customer service representative should work more efficiently in getting demands in right time and helping the planning team for assessment of more correct demand predictions. f.) Reduce time of production at each stage and also make operation organization structure more flat to reduce time consumed for inter department movement.


Reebok (Pages 177 183 in the textbook) 1.) What are the main problems faced by Reebok? (4 6 sentences) Ans: The problem that Reebok is facing is meeting the always changing demand of the Retailers in terms of jersey of players and team. This demand is influenced by fans(customer) demands on the basis of popularity as well as performance in NFL season. Moreover, managing inventory , forecasting and assessing demands is the areas of deep concern for Reebok. Also, decision of leftover jerseys for either maintaining it as inventory for new season or selling them on discount is tough job for Reebok. 2. ) Identify at least 6 potential causes of the problems faced by Reebok. (6 8 sentences) Ans: Causes of the problems faced by Reebok are:a.) Demand depends on players current performance, so very difficult to predict. b.) Suddenly huge demands could be seen of players of certain team unexpectedly performing well during season , resulting in severe crunch of jerseys. c.) Deciding Inventory level is very tedious job. d.) Long production and shipping time for jersey from Contract Manufacturers. e.) Restriction on minimum no. of finished jersey of a team is too high. f.) Still the forecasting is done on the basis of pre-booking and well before the starting season, so chance of getting it faulty and emergence of new demand cannot be accessed.

3.) Propose at least 4 potential solutions that may help solve the problems faced by Reebok. (4 6 sentences) Ans: Solutions which could be helpful for Reebok to better met this demand-supply problems are: a.) Track each team very keenly, and identify its potential and based on this assessment forecasting should be done. b.) Reducing the shipping time as well as production time through outsourcing to the managers in close proximity(geographically). c.) Blank T-shirts for teams which are not likely to change their outfits in recent futures should be stored in sufficiently large amount keeping in min the carrying cost and opportunity cost. d.) A new small production unit for emergency situation should be installed in Indainapolis in line with the printing unit. e.) The leftover inventory should be used for next season rather than selling on discount; depending on teams possibility of changing the outfit.