(Solved): case study 2 The healthcare industry is embracing lean concepts to increase efficiency and decrease ...

case study 2

The healthcare industry is embracing lean concepts to increase efficiency and decrease costs. Nurses are utilizing lean concepts and methodology on things like surgery prep stations and crash carts. Meanwhile, executives from hospitals to major healthcare distributors are evaluating the entire supply chain to identify areas for improvement and waste elimination. Executives are utilizing supply chain to diagnose areas for improvement and develop a plan to end supply chain problem within the healthcare industry.

The current state challenges of healthcare industry, including:

• Stock outs and long lead times 
• Increased cost to the customers who were also indirectly incurring the cost of transportation
• Excessive purchase orders and unconsolidated freight created complexity and cost.

The large number of distributions centres caused difficulty in providing good stock-keeping unit (SKU) coverage without creating inventory bloat. Significant inter-facility transfers due to poor SKU coverage created excess costs.

2)Discuss the best method in solving challenges in healthcare logistics system?

                                                                                                                                (25 markah/ marks)