2. Problem Statement & Objective
1. MTC company was imposed additional
taxes obligations of 2.3% of the revenue
2. This leads to reduction of the net profit
3. The objective is to compensate this reduction
by optimizing other aspects of business
3. Executive Summary
1. Reduce cost by optimizing supply chain
activities
2. Reduce touch points within supply chain
which results in accumulation of cost
3. 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
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
7. Risks and Contingencies
1. Risk of stocking out
2. A proper demand planning is required to
reduce that risk
3. Risk of that surgeons may have lack of
knowledge to use new equipment
4. To mitigate that risk, a very informative videos
& guidelines should be elaborated