Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
10th Edition
ISBN: 9780134181981
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
Question
Book Icon
Chapter 11, Problem 2.1VC
Summary Introduction

Case summary:

AP hospital is one of the top hospitals dedicated to serving women and children. The hospital consists of 2000 employees, 431 bed facilities covering 676,000 square feet. With numerous limitations, AP hospital was once a part of a large buying group serving over 900 members.

AP hospital and seven other hospitals partnered and formed a small firm by the powerful name of HPA Corporation. With two changes, the corporation saved $7 million in its first year. First, the corporation was structured and staffed so that saving with its contract efforts went to eight members.

Second, it made a long term contract with 3 to 4 years and not a short-term one within a year. The supply chain activities varied in service-based firms and in AP hospital, the supply chain measure manifested itself through the MEO committee. The committee evaluated the purchase bills to achieve economic targets.

The companies succeed to make customized products with the help of third tier suppliers. The customized packs are used in the operating room, which is delivered by MGM and later assembled. The HPA permitted AP hospital to be creative and save costs which would benefit the hospital.

To determine: The ways in which the supply chain of AP hospital differs from a manufacturing firm.

Blurred answer
Students have asked these similar questions
Levi Strauss jeans created in 1873 began as a manufacturer of denim workpants with copper rivets used to strengthen the pocket stitching. By listening to its customers, Levi Strauss created the most popular piece of clothing in the world-blue jeans. Levi jeans sold in more than 110 countries has gained competitive advantage through its product offerings, distribution, and customer support.How Does Supply Chain Usage Gain Competitive Advantage within an Industry.Levi Strauss with assistance from customer support created the ‘personal pair’ kiosks that allow women to custom fit and design their own jeans. This innovation, which is part of an eight step process, involves taking four measurements from women with pre-programmed data in the kiosks and with assistance form a sales clerk a final inseam measurement made. After the measurements are made, a pair of jeans can be built to order.The process is guaranteed with home delivery for an additional $5. Even though the “personal pair’ jeans…
Arnold Palmer Hospital, one of the nation’s top hospitals dedicated to serving women and children, is a large business with over 2,000 employees working in a 431-bed facility totaling 676,000 square feet in Orlando, Florida. Like many other hospitals, and other companies, Arnold Palmer Hospital had been a long-time member of a large buying group, one servicing 900 members. But the group did have a few limitations. For example, it might change suppliers for a particular product every year (based on a new lower-cost bidder) or stock only a product that was not familiar to the physicians at Arnold Palmer Hospital. The buying group was also not able to negotiate contracts with local manufacturers to secure the best pricing So in 2003, Arnold Palmer Hospital, together with seven other partner hospitals in central Florida, formed its own much smaller, but still powerful (with $200 million in annual purchases) Healthcare Purchasing Alliance (HPA) corporation. The new alliance saved the HPA…
How does the E-commerce business influences/be influenced on logistics/supply chain? (give 3 points)

Chapter 11 Solutions

Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)

Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L