Hospital Glove Supply Chain Proposal
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Hospital Glove Supply Chain Proposal
Crystal Luterman, Ephraim Hilliard, Farhiyo Abdulsalam, Joshua Abbott, and Tacha Desir
University of Phoenix
February 7, 2011
Michael Sizemore
Hospital Glove Supply Chin Proposal
Elms Valley SurgiCare Center has been a successful hospital for a number of years. The hospital has often been at the cutting edge of exciting and new technology but as with many other organizations the economy crisis has affected the hospital’s bottom line. The hospital is looking for any way possible to cut costs. Currently, the gloves are purchased from a local supplier, but union issues have caused the price of the gloves to rise and have led to many inconsistent deliveries. One way to cut costs would be to use a different supplier for surgical gloves, and the hospital management considers purchasing its gloves from an international supplier, preferably in China. In this proposal, Team D would discuss a materials management plan for the new supply chain as well as how the hospital could use total quality control and financial forecasting to evaluate the supply chain. The proposal would also present and explain the benefits of using just in time and stockpiling supply methods as well as the benefits of applying ERPs in the supply chain.
Materials Requirements Plan
After realizing the hospital was purchasing gloves from a local supplier with high costs and unreliable delivery, it became a necessity to seek new suppliers from an international market such as Richforth Home Products Company in China. Before the hospital breaks into this new market, it must establish materials requirements plan to ensure cost reductions and consistency in the supply chains. However, variations may exist in the supply chains of international markets and therefore, the hospital needs to develop an effective process that would enable it to receive its supplies in timely manner. The hospital consumes about 2500 medical gloves monthly and may purchase...
Crystal Luterman, Ephraim Hilliard, Farhiyo Abdulsalam, Joshua Abbott, and Tacha Desir
University of Phoenix
February 7, 2011
Michael Sizemore
Hospital Glove Supply Chin Proposal
Elms Valley SurgiCare Center has been a successful hospital for a number of years. The hospital has often been at the cutting edge of exciting and new technology but as with many other organizations the economy crisis has affected the hospital’s bottom line. The hospital is looking for any way possible to cut costs. Currently, the gloves are purchased from a local supplier, but union issues have caused the price of the gloves to rise and have led to many inconsistent deliveries. One way to cut costs would be to use a different supplier for surgical gloves, and the hospital management considers purchasing its gloves from an international supplier, preferably in China. In this proposal, Team D would discuss a materials management plan for the new supply chain as well as how the hospital could use total quality control and financial forecasting to evaluate the supply chain. The proposal would also present and explain the benefits of using just in time and stockpiling supply methods as well as the benefits of applying ERPs in the supply chain.
Materials Requirements Plan
After realizing the hospital was purchasing gloves from a local supplier with high costs and unreliable delivery, it became a necessity to seek new suppliers from an international market such as Richforth Home Products Company in China. Before the hospital breaks into this new market, it must establish materials requirements plan to ensure cost reductions and consistency in the supply chains. However, variations may exist in the supply chains of international markets and therefore, the hospital needs to develop an effective process that would enable it to receive its supplies in timely manner. The hospital consumes about 2500 medical gloves monthly and may purchase...