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 : AP hospital’s constraints in making decisions based on economics alone.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 3.2VC

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: AP hospital’s constraints in making decisions based on economics alone.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

◄ Mail 18:09 5G CSTUDY_Jan25_BCOMHO...al_20241129091837.pdf.pdf FORMATIVE ASSESSMENT 1 Read the case study below and answer ALL of the questions that follow. Title: Upskilling and reskilling priorities for the gen Al era [100 MARKS] To realize the opportunity of generative Al, organizations should take a cross-collaborative, scaled approach to upskilling and reskilling workforces. The proliferation of generative artificial intelligence (gen Al) innovations necessitates a new approach to employee attraction, engagement, and retention. Our survey finds that compared to late adopters, companies adopting gen Al earlier place greater emphasis on talent development, with two-thirds already having a strategic approach to address their future talent and skill requirements. Organizations should think about a breadth of gen Al capability needs-from broad fluency supporting business goals, to deep technical and domain-specific capabilities-as well as the speed and scale at which they should be…

Question 1 (25 Marks) Procurement is a key strategic function that directly impacts an organisation’s ability to create value, manage risks, and maintain a competitive advantage in the market. Critically analyse the strategic roles of procurement and how procurement practices in the fashion industry can strategically address complex challenges such as supply chain efficiency, sustainability, cost management, and global sourcing. Provide examples from the fashion industry to further your analysis. Question 2 (25 Marks) There are several enablers that need to be in place for a procurement and supply management function to implement a value-generating mode. Examine the extent of these enablers as they present themselves in the fashion industry. Question 3 (25 Marks) You are hired by local clothing chain Fashion World. The brand wants to instill a culture of professional purchasing. Construct a policy document which you would present at the next strategy meeting which inculcates the…

◄ Files 18:11 5G CSTUDY_Jan25_SCMH_PS...Final_20241203151014.pdf FORMATIVE ASSESSMENT 1 Read the article below and answer ALL questions that follow Are your favourite fashion brands using forced labour? [100 MARKS] The global fashion and retail industry's reliance on producing quick-tumaround goods at a low cost through outsourcing and complex, globalised supply chains has allowed forced labour to thrive, workers' rights advocates war, claiming that major fashion brands profiting from the model seem reluctant to change. The apparel sector employs over 60 million workers worldwide, according to the World Bank Group. And while 97 percent of fashion and retail brands have codes of conduct and corporate social responsibility (CSR) standards, such policies are neither effective in preventing forced labour nor in ensuring remedy outcomes for workers, according to advocacy group KnowThe Chain KnowTheChain's 2021 Apparel and Footwear Benchmark Report (PDF) recently ranked 37 of the world's…