Overview: Medtriox Industries produces medical devices. The company is privately owned and is headquartered in Rockford, IL. The firm is comprised of 150 people at their headquarters facility, and 500 at their manufacturing facility in Aurora, IL. Since year 2000, the company has produced different types of portable medical devices to support military and relief efforts. Since then, the company has sold their products to agencies, institutions, and health service providers in the U.S. Their new product, the Ambulet 1000, has seen tremendous growth. It is a portable compact blood analyzer which can also perform other types of lab analysis functions in the field. Last year, it generated a profit of $4.5 million with an annual expected future demand growth of 10%. The product list price is $2500 with a cost of goods sold (COGS) of about $700. The firm plans to increase the production throughput of its manufacturing facility using automation and improving its overall supply chain management processes. For the product, the firm uses three component suppliers situated in Taipei (Taiwan), Nagoya (Japan) and Butte (Montana). The product is currently packaged in 14 x 12 x 12 corrugated boxes. Medtriox’s CEO now has a long-term strategy in the next three years to globalize the company, achieve 10% annual market growth along all product lines and eventually make the company public. The sales team projects annual order quantities over the next three years of about 500 Ambulet units each from three offshore companies located in Tokyo (Japan), Santiago (Chile) and Lisbon (Portugal). Medtriox has promised delivery lead times of no more than 60 days. You are the director of supply chain and logistics for the firm. The CEO wants to solicit input from you as to what kinds of transportation and shipping capabilities the company would need to develop to sell and move these goods across the globe to the three markets. You have been asked to put together a high- level executive summary of the projected transportation and logistics strategy of the firm. Explain how the above transportation and logistics capabilities would impact on the firm’s overall profits. (Please explain clearly). Transportation and Logistics Capabilties:  Logistics options Transportation mode options Transportation routes Transportation costs Transportation demand planning Logistics and transportation performance management What forward-looking technologies would be used, why and where Security measures

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question

Overview:

Medtriox Industries produces medical devices. The company is privately owned and is headquartered in Rockford, IL. The firm is comprised of 150 people at their headquarters facility, and 500 at their manufacturing facility in Aurora, IL. Since year 2000, the company has produced different types of portable medical devices to support military and relief efforts. Since then, the company has sold their products to agencies, institutions, and health service providers in the U.S. Their new product, the Ambulet 1000, has seen tremendous growth. It is a portable compact blood analyzer which can also perform other types of lab analysis functions in the field. Last year, it generated a profit of $4.5 million with an annual expected future demand growth of 10%.

The product list price is $2500 with a cost of goods sold (COGS) of about $700. The firm plans to increase the production throughput of its manufacturing facility using automation and improving its overall supply chain management processes. For the product, the firm uses three component suppliers situated in Taipei (Taiwan), Nagoya (Japan) and Butte (Montana). The product is currently packaged in 14 x 12 x 12 corrugated boxes.

Medtriox’s CEO now has a long-term strategy in the next three years to globalize the company, achieve 10% annual market growth along all product lines and eventually make the company public. The sales team projects annual order quantities over the next three years of about 500 Ambulet units each from three offshore companies located in Tokyo (Japan), Santiago (Chile) and Lisbon (Portugal). Medtriox has promised delivery lead times of no more than 60 days.

You are the director of supply chain and logistics for the firm. The CEO wants to solicit input from you as to what kinds of transportation and shipping capabilities the company would need to develop to sell and move these goods across the globe to the three markets. You have been asked to put together a high- level executive summary of the projected transportation and logistics strategy of the firm.

Explain how the above transportation and logistics capabilities would impact on the firm’s overall profits. (Please explain clearly).

Transportation and Logistics Capabilties: 

  1. Logistics options

  2. Transportation mode options

  3. Transportation routes

  4. Transportation costs

  5. Transportation demand planning

  6. Logistics and transportation performance management

  7. What forward-looking technologies would be used, why and where

  8. Security measures

AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

Similar questions
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON