Hospital Supply Inc.: A quantitative analysis I. Introduction: Hospital Supply‚Inc.‚produced hydraulic hoists that were used by hospitals to move bedridden patients. The costs of manufacturing and marketing hydraulic hoists at the company’s normal volume of 3‚000 units per month are shown in Exhibit 1. EXHIBIT 1: Cost per unit for hydraulic hoists Unit manufacturing costs: Variable materials $550 Variable labor 825 Variable overhead 420
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------------------------------------------------- G R O U P C A S E 3: H O S P I T A L S U P P L Y‚ I N C Given Information: Hospital Supply‚ Inc.’s Normal Volume (in units per month) | 3‚000 | Regular Selling Price (per unit) | 4‚350 | Costs per Unit for Hydraulic Hoists | | | Unit Manufacturing Costs: | | | Variable Materials | 550 | | Variable Labor | 825 | | Variable Overhead | 420 | | Fixed Overhead
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Question 1: i. Fixed Cost = ($660 + $770) x 3‚000 units = $4‚290‚000.00 Variable Cost = $550 + $825 + $420 + $275 = $2‚070 Total Variable Cost = $2‚070 x $3‚000 = $6‚210‚000.00 Unit Contribution Margin = Sales – Variable Cost = $4‚350 – $2‚070 = $2‚280 ii. Contribution Margin Ratio = Total Variable Cost Total Sales = $2‚280 x 3‚000 $4‚350 x 3‚000 = 0.524137 iii. Break even volume in units = Total Fixed Cost Unit Contribution Margin = $4
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Supply Chain 1 I Care Healthcare Supply Chain Management By Jeffrey S. Moser Operations Management MGT 554 Professor Stephen Wernick October 12‚ 2004 Supply Chain 2 Supply Chain Management plays a vital role in our hospitals today. With the growing cost of healthcare and new technologies‚ it is vital for hospitals to run as efficiently as possible and without jeopardizing care. To the materials manager and to the financial minds of a hospital the area of supply chain is a tedius task at best
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Question 5 13 Question 6 14 Question 7 16 V. CONCLUSION 18 Bibliography 19 INTRODUCTION The case is about manufacturing company‚ Hospital Supply‚ Inc.‚ that produced hydraulic hoists for the local market. The hydraulic hoist is useful to the hospital for moving bedridden patients. Most of sales made to local hospitals. Significant to activity of sales and production of hydraulic hoist‚ there are costs incurred due to the consumption of resources. Presented in Exhibit 1 are
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any hospital. They are the reason why hospitals exist and are kept in existence. That is why they deserve the utmost respect‚ care and best possible treatment. Unfortunately‚ there have been many times that patients have felt and reported that they have been mistreated by certain staff members in the hospital. Most of the cases that have been reported by the patients are directly correlated with patient escorts. Patient escorts are the ones in charge of discharging patients out of the hospital. This
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Management Individual Assignment Patient Escorts at City Hospital City Hospital is located in the heart of a large Midwestern city. It is one of five major hospitals in the area and has recently built a small addition for treating well-known patients‚ such as professional football players‚ top company executives‚ and singing stars. Visiting or local celebrities always choose City Hospital if they need treatment. City Hospital has about 1200 hospital beds and employs 4500 individuals‚ including about
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The City Main Hospital Cochin‚ was incurring losses inspite of its rising popularity and increasing number of outdoor patients. The management had been thinking of doing something to solve the problem. As the major burden of the heavy cost was due to the surplus manpower‚ the simplest solution‚ according to the Hospital’s Executive Director‚ was to reduce staff‚ especially‚ from the nursing department. The hospital had five floors. The fifth floor was meant for keeping chronic and old age patients
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Arnold Palmer Hospital’s Supply Chain Case Arnold Palmer Hospital is one of the nations leading hospitals for women and children. It is located in Orlando‚ Florida‚ and is apart of a national purchasing group. Even though being apart of the purchasing group has some advantages‚ there are also many disadvantages. These disadvantages forced the hospital to change its supply chain strategy. After leaving this group the hospital along with several other hospitals from the group formed their own
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Supply Chain Management in Hospital: A Case Study Samuel Toba • Mary Tomasini • Y. Helio Yang San Diego State University‚ San Diego‚ CA It is a common misunderstanding that hospital purchasing is just a functional part of operations rather than a strategic means to achieve financial cost savings. The supply chain process is the essential link for all programs and services offered by a hospital‚ and hence any improvement in managing the supply chain can positively impact bottom line profitability
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