unit8 - Supply Chain Management and Best Operational...

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1 Supply Chain Management and Best Operational Approaches The management of all activities and processes related to both upstream vendors and downstream customers in the value chain Tracking and managing demand, inventory, and delivery Procurement and vendor relationship management Technology enabled In 2006, the United States will spend over $2 trillion on healthcare. By 2016, it is predicted that one dollar of every five dollars of the U.S. economy will be devoted to healthcare devoted to healthcare. Supply costs in hospitals account for 15–25 percent of operating costs Transaction costs are estimated at $150 per order for buyer and seller There is 35 percent inconsistency between There is 35 percent inconsistency between hospital and supplier data, and it costs $15 to $50 to research and correct a single order discrepancy Inventory is the stock of items held to meet future demand. Inventory management answers three questions: How much to hold How much to hold How much to order When to order To meet anticipated demand To level process flow To protect against stockouts To take advantage of order cycles To help hedge against price increases or to take advantage of quantity discounts To decouple process steps
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Classification system Inventory tracking system Reliable forecast of demand Knowledge of lead times Reasonable estimates of: Holding or carrying costs Ordering or setup costs Shortage or stockout costs ABC Classification System Classifying inventory according to some measure of importance and allocating control efforts accordingly Pareto Principle High (80%) - A very important - B moderately important - C least important Annual $ volume of items A B C Low (5%) Few (20%) Many (50%) Number of Items Track additions and removals Bar-coding Point of use or point of sale (POS) RFID Physical count of items Periodic intervals Cycle count Find and correct errors Exercise Averaging methods Trend, seasonal, and cyclical models Model development and evaluation Identify the pattern and construct a formula that will “predict” successive numbers in the series. What is the next number in the series? ( a )3737373737373737 (a) 3.7, 3.7, 3.7, 3.7, 3.7, 3.7, 3.7, 3.7 (b) 2.5, 4.5, 6.5, 8.5, 10.5, 12.5, 14.5, 16.5 (c) 5.0, 7.5, 6.0, 4.5, 7.0, 9.5, 8.0, 6.5 What is the formula for the next number in the series? a) 3.7, 3.7, 3.7, 3.7, 3.7, 3.7, 3.7, 3.7 Constant Next number is 3.7 b) 2.5, 4.5, 6.5, 8.5, 10.5, 12.5, 14.5, 16.5 0.5 + 2 , where x specifies the position (index) of the number in the series Next number is 18.5 c) 5.0, 7.5, 6.0, 4.5, 7.0, 9.5, 8.0, 6.5 4.5 + 0.5 x + = 0, C4 = 2
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This note was uploaded on 08/21/2011 for the course AHS 403 taught by Professor Paustian during the Summer '11 term at University of Alabama at Birmingham.

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unit8 - Supply Chain Management and Best Operational...

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