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Health Care Operation Management (Coursework Sample)


1. Your hospital needs to order Kleenex and the supply chain manager is going to use Economic Order Quantity (EOQ) to determine how much to order based on the following information
Cost of Kleenex - $10/case*
Carrying cost - $0.42/box
Cost of ordering - $100/order
Lead time - 2 weeks
Annual Demand - 500 cases/year
*case = 24 boxes of Kleenex
Please use the inventory excel document attached as a tool to work through the questions below: Inventory Discussion.xlsPreview the document
What quantity should the manager order?
How often should the order be placed?
When should the order be placed?
If the manager set up a two-bin system for Kleenexes, how many cases would be in each bin?
2. Discuss the challenges of implementing SCM in a healthcare organization and how they can overcome these challenges?


Health Care Operation Management

Discuss the challenges of implementing SCM in a healthcare organization and how they can overcome these challenges?

Implementing the supply chain management (SCM) has hidden costs that increase the healthcare costs without necessarily improving outcomes. This includes instances where there is provider preference and this is complicated when there is underestimation of the costs. There are preventable wastes in the supply chain, which are preventable, and if health care organizations do not know about the costs of particular items it is more likely that they could purchase expensive items even when cheaper options are available. It is necessary to ensure that there are better patient outcomes and quality of care and this can reduce supply costs.

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