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Systems Dynamics Application

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Running Head: SYSTEMS DYNAMICS APPLICATION CASE STUDY 1

Systems Dynamics Application Case Study

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SYSTEMS DYNAMICS APPLICATION CASE STUDY 2

The Supply Chain's Overall Performance and Business Impact

The supply chain overall performance in the healthcare sector can be traced from the way

it has linked producers, healthcare providers, and purchasers to ensure that healthcare service

delivery is not interrupted. Although there is hardly a coordinating supply chain that exists, it

helps to control and manage the fixed costs of healthcare facilities that stands at 90% of their

operational costs (Burns et al., 2002). There has been a reluctance among the healthcare players

to embrace supply chain into their operational process because they are largely independent of

the other key players in the supply chain network. This has adversely affected the effectiveness

of the supply chain, and its overall performance has been poor.

The business impact of the poor performance of supply chain in the healthcare sector is

poor management of its supply chain, leading to disorganization and ineffective service delivery.

It has also caused poor distribution and inventory management within the healthcare facilities,

making it difficult for a healthcare organization to take accountability of all their resources and

equipment (Burns et al., 2002). Besides, the poor performance of supply chain in healthcare

facilities has led to lack of the culture of process improvements in the healthcare organization,

thus creating a shortfall in quality of healthcare offered to the patients.

Another business impact caused by the poor performance of supply chain in healthcare

facilities is the laxity among the healthcare executives who have no interest in the supply chain

network (Toba & Yang, 2007). Instead of implementing strong supply chain networks, these

healthcare executives have resorted to implementing their inventory control through ad-hoc

procurement systems. These informal procurements systems are ineffective and have loopholes

that may lead to a loss in the part of the organization, thus decreasing the effectiveness s of

services offered.

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Running Head: SYSTEMS DYNAMICS APPLICATION CASE STUDY Systems Dynamics Application Case Study Student’s Name Institution of Affiliation Course Date 1 SYSTEMS DYNAMICS APPLICATION CASE STUDY 2 The Supply Chain's Overall Performance and Business Impact The supply chain overall performance in the healthcare sector can be traced from the way it has linked producers, healthcare providers, and purchasers to ensure that healthcare service delivery is not interrupted. Although there is hardly a coordinating supply chain that exists, it helps to control and manage the fixed costs of healthcare facilities that stands at 90% of their operational costs (Burns et al., 2002). There has been a reluctance among the healthcare players to embrace supply chain into their operational process because they are largely independent of the other key players in the supply chain network. This has adversely affected the effectiveness of the supply chain, and its overall performance has been poor. The business impact of the poor performance of supply chain in the healthcare sector is poor management of its supply chain, leading to disorganization and ineffective service delivery. It has also caused poor distribution and inventory management within the healthcare facilities, making it difficult for a healthcare organization to take accountability of all their resources and equipment (Burns et al., 2002). Besides, the poor performance of supply chain in healthcare facilities has led to lack of the ...
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Tags: application systems Dynamics