Meditech Case Solution

Q-1) What are Meditech’s problems in introducing new products? In manufacturing ALL products?

When a new product is introduce initial demand is high which can be find out by analyzing past data which shows initial surge in demand then it settle down in a pattern which usually happens with all new products and when demands are not met it leads to panic ordering from dealers which in turn causes high finished goods inventory as demand slows down with the passage of time and production is not adjusted as per the demand therefore it can be said that existence of Poor service for new product introductions is a major cause.

Q-2) What is driving these problems, both systemically and organizationally?

When we analyze pattern in demand it follows predictable trend with initial high demand and then stable with passage of time which is clear from trend analysis in Figure 1-10, but with each new product dealers are concerned with inventory build up to meet demand and it creates mismatch in FG inventory and demand with dealers hence creating gap.

Q-3) Why is the Customer Service manager the first person to recognize the major issues?

Since Customer Service Manager face the brunt of Customer with supply shortage and due to lack of information available to find out the root cause with different set of standards are followed for demand forecast and no one seems responsible for forecast errors it is important to analyze and standardize the information system and come up with meaningful analysis which identify the major issues in delays for production as per demand.

Q-4) How would fix these problems?

First of all recognize that demand has a predictable pattern and must be forecasted by analyzing past experiences and data analysis then eliminate delays and put assembly in pull system where it is driven by demand rather than push which is more of stagnant approach it requires flexibility in planning and will help in eliminate extra inventory which is not is...