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The Meditech's problems

(Q1) What exactly are Meditech's problems in producing services? In manufacturing all products?

Whenever a new product is released by meditech, the customers seem to be to get frustrated as a result of service problems encountered by them. This trend seems to appear every time the business introduces a new product. This has really frustrated the clients. There is a continuous scarcity of supply whenever a new product is unveiled, for reasons unknown. Forecasting in the organisation is definitely problems. No data related to forecasting was placed in the company which evened worsened the situation. Moreover high levels of done products were also continuously posing an issue. The inventory levels by greater than 40% that was a center breaking figure. When comparing the genuine service levels with the inventory levels there is a wide difference between your two. Additionally it was problematic for the management to reduce the levels too much as they feared that the performance of the business may go down even more. Anxiety ordering from sellers and other customers also posed to be a large problem for the company. Panic ordering causes unrealistic upsurge in demand of a product. It was discovered that due to the nature of the task it was very difficult to forecast the right level of requirements, moreover there was no chance that panic ordering could be controlled because there is little or nothing people at meditech could do about the activities and inactions of their buyers.

(Q2) What is generating these problems, both systematically and organisationally?

Issues like incapability of the management to forecast the sales and other requirements was one of the major issues that have been leading to this problem. Behaviour of customers was also one of the reasons for these problems. Unpredictable dynamics of demand of product was aggravating this problem. In addition the management was not having the ability to decide on a fixed completed goods inventory level. There is always fluctuation in the done goods inventory level. Analysts discovered that finished goods inventory level was up to 40% greater than needed. The business has not placed any details for proper forecasting which has created more problems. Unsure demands by the clients are also a problem. Often company is encountered by the challenge of false demands.

(Q3) How come the client service supervisor the first person to recognise the major issues?

The customer service administrator is the individual who's the actual responsible for all the sales that occurs in the business. He is the main one who is in direct contact with both the customers and the production department. He's responsible for participating to the issues and grievances of the clients. If a many customers revert back again to him with similar problems he is aware that there is something wrong in the new product given. It really is his job to help you the customers using their problems and at the same time he must also reach the key of the trouble. Once he is aware why the situation is being induced he conveys the info to the development departments and also chalks out a possible solution for the issue. With his experience of selling the merchandise he's also responsible for helping out the many analysts in properly forecasting the mandatory production and finished goods inventory levels. High inventory levels unnecessarily increase the working capital demands of the business and accumulate more pressure with them.

(Q4) How can you fix these problems?

First of all the company needs to improve its forecasting methods. Proper forecasting shall sort out half the issues of the company. A simple statistical approach to linear regression based on past forecasting data will help the business in doing so. Moreover the company needs to carefully follow its own demand and offer trends. Whenever the company is introducing a fresh product for the first few weeks the demand of the product is becoming excessively high. But at the same time as soon as the first few weeks are through the demand is instantly stabilising. Moreover the overall demand of the merchandise of the company is a lot low than the actual supply. The business needs to reduce its excessive creation, but this will happen keeping in mind the actual fact that the company should be able enough of getting together with the high first demand of a new product. The company should also appreciate that anticipated to panic ordering most of the changing times false demand is created which escalates the pressure on the company. The business should develop ways of assessing these fake demand situations. Moreover the company must also reduce its finished goods inventory levels; this will reduce the pressure on the company and will also decrease the working capital needs of the company.

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