Margate Hospital Case Study and Responses

User Generated

Nqnz10

Business Finance

Description

Discussion Description

Comment on Case Study Margate Hospital in the textbook page 370

Discussion Requirements

Comment on the following points:

  • Respond to the questions at the end of the case and comment on classmate responses.

Discussion Response Expectations

  • Discussions are graded as follows:
    • Meaningful initial responses that add to others learning merit up to 70 points
    • verifiable references in APA format merit up to 10 points
    • responses to other classmates that are meaningful and add to learning merit up to 10 points each, up to 20 points total.
    • "I agree..." or "I like...." are admirable but merit NO POINTS!
    • Responses posted AFTER the due date will only earn points for the initial response, since no actual dialog will have taken place.
  • Discussions occur when there is dialogue; therefore, you need to build upon the posts and responses of other learners to create discussion threads,
  • Make certain that all posts or responses address the question, problem, or situation as presented for discussion. You should extend the topic, but do not stray from the topic.
  • When relevant, add to the discussion by including prior knowledge, work experiences, references, web sites, resources, etc. (giving credit when appropriate).
  • Contributions to the discussions should be complete and free of grammatical or structural errors.
  • Avoid repeating of explicit information in the text. Formulate answers that can be interpreted through various perspectives.
  • Compare, contrast, and look for connections between articles assigned on a given day with each other or with past articles assigned for class.
  • Look for gaps in authors' reasoning or statements that you find problematic.
  • Think about the broader issues that the author's arguments point to. What are the broader implications?
  • Look for connections between theoretical pieces assigned and concrete actions that can be taken to put them in practice.
  • Consider connections to current event issues.

Unformatted Attachment Preview

Discussion Reply 1 • Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. Looking at the study data and using ABC analysis, the SKUs are listed in descending order in accordance to its product annual usage value. Here, SKUs are classified in A items, B items and C items based on their total dollar usage. A items (10%), B items (15%), and C items (75%). So, Category A is $4001-$6000, Category B is $1501-$4000, and Category C is $0-$1500. SKU Total Annual Usage Average Unit Cost ($) Total Dollar U 1 212 24 5,088 2 210 2 420 3 117 50 5,850 4 77 28 2,156 5 60 58 3,480 6 48 55 2,640 7 33 73 2,409 8- critical 27 210 5,670 9 19 74 1,406 10-critical 18 45 810 11 12 33 396 12 7 65 455 13 4 41 164 14 4 20 80 15-critical 3 72 216 16 3 61 183 17 3 8 24 18 2 134 268 19 1 34 34 20 1 29 29 • How do you recommend managing these ABC and critical inventory changes? ABC analysis enables the hospital to accurately take care of the most expensive parts, and overbuy the cheaper parts so that they don't run out of them. It enables them to continuously update records and make corrections. A suggestion to manage these ABC and critical inventory changes would be to allocate the stockroom a 30 minute period prior to beginning their shifts to : Print the A list and count, divide the B list into 10 parts counting each different part each day (could take 2 weeks to count them) and for the C items do not count them but use a 2-bin system. Since C items won't be counted but instead ordered by the bucket (i.e. screws, wires), when the buckets arrive divide them into two bins, putting one bin on the bottom of the shelf for reorder, and using and issuing the top bucket until it runs out to reorder level. These methods will simplify operations on the floor and in the stock room making data accuracy work more bearable and effective for employees. The ABC method also gives them early indications when something goes wrong. Finally, critical items will need to be prioritized and replenished immediately if there is 20-25% of stock left. • Can you think of any other inventory management systems besides health care where some SKUs might be defined as critical? Banks, grocery stores or construction. I will upload the second one later Discussion reply 1. Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. After performing an ABC analysis, the hospital can categorize each category differently on how it can be managed. For example they could categorize the projected annual usage and put the ones that are used most at a higher priority, and the ones that are used the least at a lower priority. 2. How do you recommend managing these ABC and critical inventory categories? I recommend managing these ABC and critical inventory categories by separating them and not keeping them together. I recommend separating these two categories because when something is critical, you want to put more attention towards that and not just have it thrown in with all the other stuff. Once these two categories are separated, you can assign these two categories to two separate people to take care of or do both categories yourself, but complete one category before you start the other. 3. Can you think of any other inventory management systems besides health care where some SKUs might be defined as “critical”? Another inventory management system besides healthcare where some SKU’s might be defined as critical would be the banking industry. SKU’s can be used in many different aspects of different businesses besides healthcare, but in banking you might have a critical account that needs to be attended to immediately that cannot be thrown in with all the regular accounts that you have with your bank. 370 PART THREE: Managing Operations and Supply Chains Margate Hospital ost-containment activities have become particularly by major revisions in health care reimbursement policies and significant growth in marketing activities by private sector health care organizations. Recognizing that poor inventory control policies reflect ineffective use of orga- nizational assets, many hospital managers have sought to institute more systematic approaches to the control of sup- ply inventories. At Margate Hospital, analysts collected data of 20 dis- posable SKUs in a pulmonary therapy unit. These data are shown in Exhibit 12.27 (these data are available in the work- sheet Margate Hospital Case Data in MindTap). Three of the SKUs are designated as critical to patient care. The hospital administrator wants to develop better inventory management policies for these items. Case Questions for Discussion: 1. Using the case data, propose a breakdown for an ABC analysis, and clearly outline how each category of items might be managed by the hospital. (Use the Excel ABC template in MindTap:) 2. How do you recommend managing these ABC and critical inventory categories? 3. Can you think of any other inventory management systems besides health care where some SKUs might be defined as "critical”? Critical EXHIBIT 12.27 Margate Hospital Study Data Total Annual Average SKU Usage Unit Cost 1 212 $24.00 210 $2.00 3 117 $50.00 77 $28.00 5 60 $58.00 TE 48 $55.00 33 $73.00 27 $210.00 19 $74.00 10 18 $45.00 . 11 12 $33.00 www 12 7 $65.00 13 $41.00 541.00 14 19 $20.00 15 13 $72.00 16 16 17 17 $8.00 18 $134.00 19 $34.00 20 1 $29.00 Critical Critcal $61.00
Purchase answer to see full attachment
Explanation & Answer:
1 Page
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

1

Margate hospital Case study

Name
Institution Affiliation
Course Name
Instructor

2
Using the case data, propose a breakdown for an ABC analysis and clearly outline how the
hospital might manage

Based on the data provided from the case study, the SKU items are divided into three
groups and from the highest to lowest with respect to their total annual dollar usage. Category A
is the highest, and it involves items that range from $4001 to $6000. Category B includes items
with total dollar usage ranging from $1501 to $40000. The last group is C, which shows items
with a total dollar usage of a maximum of $ 1500.

TOTAL USAGE
SKU (ANNUALLY)
1
212
2
210
3
117
4
77
5
60
6
48
7
33
8
27
9
19
10
18
11
12
12
7
13
4
14
4
15
3
16
3
17
3
18
2
19
1
20
1

AVERAGE
COST(PER UNIT)
$
24.00
$
2.00
$
50.00
$
28.00
$
58.00
$
55.00
$
73.00
$
210.00
$
74.00
$
45.00
$
33.00
$
65.00
$
41.00
$
20.00
$
72.00
$
61.00
$
8.00
$
134.00
$
34.00
$
29.00

TOTAL $ USAGE
$
5,088...


Anonymous
Great study resource, helped me a lot.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags