The case deals about JIT in AP hospital, which is founded in 1989. AP hospital tried to manage their pressure and reduce the cost by controlling the inventory using JIT method. The AP Hospital has a committee which is called the Medical Economics Outcome Committee, comprising of doctors from various disciplines, which helps in identifying and standardizing various custom packs. The objective is to reduce the number of Stock Keeping Units (SKUs) so that not only the inventory holding costs are reduced but also more number of SKUs, result in a higher probability of the wrong SKU landing at the Operation room. Already for 45 different procedures carried out at the AP Hospital, 10 standardized SKUs for surgical custom packs are used. To determine: The recommendation to the hospital when the error is found in the pack.

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Chapter 16, Problem 2.1VC

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The case deals about JIT in AP hospital, which is founded in 1989. AP hospital tried to manage their pressure and reduce the cost by controlling the inventory using JIT method. The AP Hospital has a committee which is called the Medical Economics Outcome Committee, comprising of doctors from various disciplines, which helps in identifying and standardizing various custom packs.

The objective is to reduce the number of Stock Keeping Units (SKUs) so that not only the inventory holding costs are reduced but also more number of SKUs, result in a higher probability of the wrong SKU landing at the Operation room. Already for 45 different procedures carried out at the AP Hospital, 10 standardized SKUs for surgical custom packs are used.

To determine: The recommendation to the hospital when the error is found in the pack.

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