Owens Miner

Owens and Minor (A) This is a case that has relatively few calculations. However, it is a nice application of how superior costing information pose overhaul alter decisions. Also, it highlights some of the issues involved in obsession behavior, particularly crossways organizational boundaries. 1.Evaluate the impact of undetermined determine on distributors, customers and suppliers. Distributors (Owens & Minor): Some products are most high-priced to compensate than others. Using a flat 7% across alone products provides very different profit margins across products, not a clear 7%. This model is causing O&M to lose profit. Customers are also demanding to a greater extent(prenominal). Previously, O&M would resign a load weekly to the hospital dock. The hospital would then receive and breakdown the shipment. Now, many hospitals are requesting little shipments more than frequently, modeling a JIT take stock type system. In addition, some venues are moving toward a stockless system, requiring O&M to package the production in much smaller units, ordinarily in a plastic tote which would go forthwith to the nursing and surgical units, bypassing the entire storeroom processes.

The following unembellished requirements for a sockless or JIT system add superfluous cost, clipping profit margin on a cost bring down model; supererogatory line item, reckon of POs, keep down of deliveries, special packaging requirements, bulk shipment breakdown handling, livestock carrying cost for O&M, additional staff required for the additional services. To expres s reduced costs, distributors generally buy ! larger orders from suppliers to birth an economy of scale discount. However, this would require distributors to carry and handle more inventories. Distributors are often carrying receivables much longer than the suppliers payment terms. This puts a constraint on cash. Customers (hospitals and health help centers): Hospitals with stockless systems and high maintenance actually may benefit from a cost plus system. These venues...If you want to get a refuge essay, order it on our website: BestEssayCheap.com

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