Meditech Surgical

Meditech Surgical - OM517 Meditech Surgical With its...

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OM517: Meditech Surgical With its current SC structure, Meditech is not meeting the initial high demand of newly introduced products. Exhibit 3 in the case shows that it takes Meditech’s production schedules several months to catch up back orders of new products. Poor delivery service is not confined to new product offerings. Meditech is not capable of meeting unexpected demand despite its high levels of inventory (as Exhibit 4 & 5 indicate). Among the 6 drivers of SC performance, inventory and information seem to be at the core of these problems. Meditech’s facilities seem to have reasonable capacity to meet market demand—it typically takes about 3 weeks for the company to produce endoscopic surgical instruments from assembly to packaging/sterilization when component parts are ready. If Meditech had more accurate demand forecast and better inventory policies, I think, it could be responsive to the market and be successful. The push/pull boundary in the production process seems to be at the right place. If
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