D04 Team 25 -- Simon Thornington, Kumar-Gautam Sinha, Dimitra Georgakis, Edmond Daccache
The root of the problem with the tot chain situation at Erasmus MC is a mismatch between the focus of the picture chain and the type of yield in question. In particular, stents are a eminently secernate innovative product, and as such, require a low lead-time quick and responsive supply chain. Stents themselves are expensive, and they have very lofty holding costs. The costs of expiration as well as the costs of a stock-out are prohibitive, and combined with the variety of the product, this demands a supply chain with precise inventory knowledge and transparency, and stung vendor integration.
Currently, the supply chain is push ground, with a high degree of inventory fragmentation. That is, stock is beingness kept in multiple places and checked relatively infrequently, making it difficult to unimaginable for managers upstream to eviscerate any visibility into the actual responsibility of current stock levels for all the varieties of stents. This directly leads to the stock-out problems.
Less unequivocal is the connection to the expiration problem; in a push-based supply chain like this, stents are being shipped to the downstream destinations based on their annual usage across all the sites; a stent that is used infrequently (such as the 3.25 variant) is being stocked at all the sites, which for a product with a limited shelf life and high holding costs, is inappropriate. It is very likely that the mandate they are currently using to restock their inventory is add to the stock-out problems (see Appendix A); theres no additive safe stock term, nor any data on how often second choice stents are actually being used. Its presumable that during their long resupply process, many 2nd choice stents are being used due to stock-outs, and this resupply point calculation will plow them as 1st choice demand, perpetuating the problem.
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