Pacific Healthcare Case Summary
Case Name: Pacific Healthcare TLMT313: Supply Management
15 June 2014
I. Major Facts
A. Pacific Healthcare is the largest healthcare provider in Santa Barbara County.
B. The institution consists of three hospitals: Pacific Memorial (415 beds), Pacific Cabrillo (250 beds), and Pacific Isla Vista (300 beds).
C. Barney Rubble is the corporate director of supply management for Pacific and he is in charge of procuring supplies for all Pacific Healthcare subsidiaries.
D. Pacific Healthcare when combined with all three hospitals accommodates over 1,500 beds.
II. Major Problems
A. Kodak wants to provide the X ray film at a cheaper cost and also provide X ray equipment along with maintenance and service for being the single supplier of the X ray film. …show more content…
B.
Barney Rubble is re-evaluating on whether to keep Kodak’s contract of X ray film or go in a different direction with another company at a cheaper price.
C. Barney Rubble should examine the other benefits that Kodak is offering versus other suppliers such as maintenance, service, and furnishing of the X ray equipment.
III. Possible Solutions
A. DuPont film could offer a better and have the same quality film as Kodak.
B. Barney Rubble should consider going with DuPont at a lower cost than Kodak if he is pondering the idea of changing to another company.
C. Barney Rubble should also consider adding extra benefits similar to what Kodak offers because in the end his company can end up saving a lot of money.
D. Both Fuji and 3M offer a lower cost for their film but their film meets minimum spec requirements that wouldn’t be beneficial to Barney Rubbles Company.
IV. Choice and Rationale
A. Kodak’s film per price sheet is $1.80.
B. Agfa’s film per price sheet is $1.58.
C. DuPont’s film per price sheet is $1.50
D. Fuji’s film per price sheet is
$1.40
E. 3M’s film per price sheet is $1.35
F. The best available film manufacturer is DuPont.
V. Implementation
After gathering all of the information given in this case study, the manufacturer I would chose for film would be DuPont. I chose this manufacturer because it has the same quality as Kodak but at a much cheaper role. In the end Barney Rubble will end up saving 30 cents per sheet by choosing DuPont over Kodak and this will end up saving him much more money in the long run. 3M is also being sold at a good rate but their quality would not be appealing to Mr. Rubble and ultimately he would be disappointed with the outcome. In my opinion, risks are being taken with all five manufacturers but DuPont seems to be the best decision at this point based off everything that was outlined in this case study. Low risk equals high reward! One action Mr. Rubble could have taken prior to Mr. Howell’s death to obtain reduced film prices was to convince Mr. Howell to authorize the use of an X ray film other than Kodak. It seemed like Mr. Howell was stubborn and not open to other ideas at the time. By Barney Rubble not convincing Mr. Howell to authorize the use of X ray film the company found themselves in a situation they didn’t want to be in.
References
Burt, Petcavage, & Pinkerton, Richard (2010). Supply Management. 8th Edition. New York, NY: McGraw- Hill
Pacific Healthcare Case Study 1
15 June 2014
I. Major Facts
A. Pacific Healthcare is the largest healthcare provider in Santa Barbara County.
B. The institution consists of three hospitals: Pacific Memorial (415 beds), Pacific Cabrillo (250 beds), and Pacific Isla Vista (300 beds).
C. Barney Rubble is the corporate director of supply management for Pacific and he is in charge of procuring supplies for all Pacific Healthcare subsidiaries.
D. Pacific Healthcare when combined with all three hospitals accommodates over 1,500 beds.
II. Major Problems
A. Kodak wants to provide the X ray film at a cheaper cost and also provide X ray equipment along with maintenance and service for being the single supplier of the X ray film. …show more content…
B.
Barney Rubble is re-evaluating on whether to keep Kodak’s contract of X ray film or go in a different direction with another company at a cheaper price.
C. Barney Rubble should examine the other benefits that Kodak is offering versus other suppliers such as maintenance, service, and furnishing of the X ray equipment.
III. Possible Solutions
A. DuPont film could offer a better and have the same quality film as Kodak.
B. Barney Rubble should consider going with DuPont at a lower cost than Kodak if he is pondering the idea of changing to another company.
C. Barney Rubble should also consider adding extra benefits similar to what Kodak offers because in the end his company can end up saving a lot of money.
D. Both Fuji and 3M offer a lower cost for their film but their film meets minimum spec requirements that wouldn’t be beneficial to Barney Rubbles Company.
IV. Choice and Rationale
A. Kodak’s film per price sheet is $1.80.
B. Agfa’s film per price sheet is $1.58.
C. DuPont’s film per price sheet is $1.50
D. Fuji’s film per price sheet is
$1.40
E. 3M’s film per price sheet is $1.35
F. The best available film manufacturer is DuPont.
V. Implementation
After gathering all of the information given in this case study, the manufacturer I would chose for film would be DuPont. I chose this manufacturer because it has the same quality as Kodak but at a much cheaper role. In the end Barney Rubble will end up saving 30 cents per sheet by choosing DuPont over Kodak and this will end up saving him much more money in the long run. 3M is also being sold at a good rate but their quality would not be appealing to Mr. Rubble and ultimately he would be disappointed with the outcome. In my opinion, risks are being taken with all five manufacturers but DuPont seems to be the best decision at this point based off everything that was outlined in this case study. Low risk equals high reward! One action Mr. Rubble could have taken prior to Mr. Howell’s death to obtain reduced film prices was to convince Mr. Howell to authorize the use of an X ray film other than Kodak. It seemed like Mr. Howell was stubborn and not open to other ideas at the time. By Barney Rubble not convincing Mr. Howell to authorize the use of X ray film the company found themselves in a situation they didn’t want to be in.
References
Burt, Petcavage, & Pinkerton, Richard (2010). Supply Management. 8th Edition. New York, NY: McGraw- Hill
Pacific Healthcare Case Study 1