Operations Mgmt, Erasmus Stent Case D04 Team 25 -- Simon Thornington, Kumar-Gautam Sinha, Dimitra Georgakis, Edmond Daccache The root of the paradox with the tot chain situation at Erasmus MC is a mismatch between the focus of the picture chain and the fictional character of yield in question. In particular, stents argon a eminently secernate innovative product, and as such, require a poor lead-time quick and responsive supply chain. Stents themselves are expensive, and they have genuinely lofty holding costs. The costs of expiration as sanitary as the costs of a stock-out are prohibitive, and combined with the renewing of the product, this demands a supply chain with precise parentage experience and transparency, and stung vendor integration. Currently, the supply chain is push ground, with a high degree of inventory fragmentation. That is, stock is beingness unploughed in multiple places and checked relatively infrequently, making it fractious to unimaginable for managers upstream to eviscerate any visibility into the veridical responsibility of current stock levels for alone the varieties of stents. This directly leads to the stock-out problems.
less(prenominal) unequivocal is the connection to the expiration problem; in a push-based supply chain like this, stents are being shipped to the downstream destinations based on their annual usage across all the sites; a stent that is used infrequently (such as the 3.25 variant) is being stocked with at all the sites, which for a product with a circumscribed shelf life and high holding costs, is inappropr iate. It is very apparent that the manda! te they are currently using to restock their inventory is add to the stock-out problems (see Appendix A); theres no linear safe stock term, nor any data on how much second choice stents are actually being used. Its presumable that during their long resupply process, many 2nd choice stents are being used due to stock-outs, and this resupply point calculation provide plow them as 1st choice demand, perpetuating the problem. In general,...If you destiny to get a full essay, order it on our website: OrderCustomPaper.com
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