Task Details: After reading the case study on page 80 of the textbook, prepare a 2500 + 10% word report (executive summary, table of contents body, conclusions and recommendations) analysing the issues in the case, and identify logistics management strategies that enable the company to become successful, and/or will be necessary for the company to maintain/improve its success in the future. Specific issues to address and conclusions to be drawn will be given with the case study.
Research Requirements: Students need to support their analysis with reference from the text and a minimum of eight (8) suitable, reliable, current and academically acceptable sources – check with your tutor if unsure of the validity of sources. Students seeking credit or above grades should support their analysis with increased number of reference sources comparable to the grade they are seeking. Sources such as Wiki, scribed.com, docstore.com, etc. are not considered acceptable sources and should not be used – reliance on such sources will result in a fail grade.
The following criteria will be used to mark the assessment:
o Research and analysis of company information (30%)
o Application of relevant theories of logistics (30%
o Development of argument/responses recommended (30%) o Written communication and referencing (10%)
More information about the criteria is available in the marking rubric.
Link to textbook:https://ebookcentral.proquest.com/lib/kingsowninst-ebooks/detail.action?docID=4901892
CASE STUDY PAGE 80 The Medical Devices Company MDC is a successful and innovative multinational company which manufactures and distributes a range of sophisticated medical devices used by surgeons in the operating room. Individual unit value for MDC’s product range is high and begins at €2000 for some stand- ard, widely used devices. Products for the European market are manufactured at two plants, one in Ireland and one in Poland. Other products and peripherals are also sold under the MDC brand and these are shipped in the first instance to both of the European manufacturing plants, before being moved downstream in the MDC supply chain. From both manufacturing plants the entire product range is then shipped to some 15 warehouses located across Europe. These 15 warehouses act as hubs and feed a further 40 warehouses, located mostly near the large urban centres across Europe. It is from these latter 40 ware- houses that MDC’s sales representatives and distribution agents draw their inventory. MDC faces a range of challenges. Advances in medical technology and an expanded product range are driving business growth. Many customers (i.e. hospitals) want improved service solutions centred around increased product availability combined (paradoxically) with lower levels of stock holding. Indeed many users are demanding a solution whereby a number of different variants of a particular device are readily avail- able for immediate use, but whereby payment is only made for the particular variant actually used during the operation. Competition in the marketplace is increasing with some competitors beginning to offer such solutions. Inventory turnover is, however, problematic for MDC’s European operation and has steadily fallen to five turns per year (the industry norm is around 10) resulting in increased inventory in the system, while issues with product obsolescence have also arisen on a number of occasions. Stock‐outs at various stages along the chain are also becoming common (especially in the case of patients ready for surgery and requiring a specific device immediately in order for the surgery to go ahead) with the resulting need to expedite inventory direct to users from either manufacturing plant. QUESTIONS ● Recommend a logistics strategy that could enable MDC in Europe to improve service to its customers and simultaneously reduce the total inventory in its European network.