Meditech has plenty of inventory but their problem is the delivery process and lack of communications between the marketing department and supply chain. They’d push their products with aggressive sales, and then when it came down to it they couldn’t get the products delivered quickly and efficiently. The production line would get backed up because of the orders, causing old and current customers orders to be delayed. 2.
There is a huge lack of communication and the panic ordering of customers would cause the demand to become higher than the amount of supplies. 3.
Customers’ complaints because of their products arriving late got Dan’s attention. Most of the customers complained that their products were arriving late, and because of the industry this is a huge problem. 4.
The demand information needs to be shared between all levels of distribution and production. This way, everyone has an idea of how the demand and supply chain work throughout the company. I would then increase the ordering time period of new products while at the same time creating incentives for customers to pre-order.
We read this so we could understand how important the demand and supply chain is. If businesses do not have the product that is being sold, then it causes delays in orders and for customers to receive their products far behind schedules. In Meditech’s situation, customers would order more products because they would think that Meditech would then ship at least part of their order to them. Because of this, the demand would exceed the amount of supply. I have learned that there are a lot of communication problems that can occur throughout a company. There are so many different areas and leaders in a business like Meditech, that if they do not all keep in communication and let the others know what is going on within a company, several problems can come into existence. Like falling behind in production because the demand and orders are coming quicker than the production line...
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