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 explain: Ap hospitals constraints in making decisions based on economics value.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 2.2VC

Summary Introduction

Introduction:

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 explain: Ap hospitals constraints in making decisions based on economics value.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Problem 1 (20 Points) Davison Electronics manufactures three LED television monitors, identified as Model A, Model B, and Model C. Davison Electronics four manufacturing plants. Each model has its lowest possible production cost when produced at Plant 1. However, Plant 1 does not have the capacity to handle the total production of all three models. As a result, at least some of the production must be routed to the other manufacturing plants. The following table shows the minimum production requirements for next month, the plant capacities in units per month, and the production cost per unit at each plant: Model Production Cost per Unit Minimum Production Requirements Plant 1 Plant 2 Plant 3 Plant 4 A $25 $28 $37 $34 48,000 B $26 $35 $36 $41 75,000 C $20 $31 $26 $23 60,000 Production Capacity 65,000 50,000 32,000 43,000 Davison’s objective is to determine the cost-minimizing production plan. Without…

SECTION B: TOPIC STRUCTURE CAPSTONE PROJECT TOPIC SUBMISSION TEMPLATE SECTION A: STUDENT DETAILS Student number Title (Mr/Miss/Ms/Mrs) Surname First name/s Title of research Date and year of registration Work Home Contact details Cell Region Date submitted Email 1.1 Title Insert title of the research. Choose a title that captures the essence of your proposed project. 1.2 Background to the Problem This section will be used to create the readers' interest. It can include a specific description of the topic that is to be investigated. A brief preview of the topic and the foundation of the problem should also be given. The researcher can achieve this through building up a detailed background of circumstances that lead to the problem being examined. Therefore, the background helps the reader understand the specific problem addressed by the researcher. This section should not include the background/history of the organisation. The background to the problem should not be more than ½ a page.…

Does Nike Corporation's emphasis on lean operations help the Vietnamese workforce that still earns $150.00 minimum wage a month since 2014?