2. Problem Statement & Objective
• MTC company was imposed additional taxes
obligations of 2.3% of the revenue
• This leads to reduction of the net profit
• The objective is to compensate this reduction by
optimizing other aspects of business
3. Executive Summary
• Reduce cost by optimizing supply chain activities
• Reduce touch points within supply chain which
results in accumulation of cost
• Optimize inventory management to reduce
inventory holding costs
4. Areas of improvement
Short term solutions:
• Establish in-house sterilization process or
partner with Sanitary companies
• Reduce number of “trunk stocks” where
inventory is held
• Establish on-site kiosks with minimum amount
of equipment
5. Areas of improvement
Short term solutions:
• Establish in-house sterilization process or
partner with Sanitary companies
• Reduce number of “trunk stocks” where
inventory is held
• Establish on-site kiosks with minimum amount
of equipment
6. Areas of improvement
Long term solutions:
• Construct a a centralized warehouse close to
hospitals with minimum lead-time
• Outsource developing a online service which
would allow nurses to place order and see
information & guidelines on new equipment
8. Risks & Contingencies
• Risk of stocking out
• A proper demand planning is required to reduce
that risk
• Risk of that surgeons may have lack of
knowledge to use new equipment
• To mitigate that risk, a very informative videos &
guidelines should be elaborated