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 commit swear out alter decisions. Also, it highlights some of the issues involved in statistical regression behavior, particularly crossways organizational boundaries. 1.Evaluate the impact of undetermined price on distributors, customers and suppliers. Distributors (Owens & Minor): Some products are most high-priced to contend than others. Using a flat 7% across each(prenominal) 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 more than than(prenominal). Previously, O&M would receive a load weekly to the hospital dock. The hospital would consequently receive and breakdown the shipment. Now, many hospitals are requesting little shipments more frequently, modeling a JIT take stock type system. In add ition, some venues are moving toward a stockless system, requiring O&M to package the production in much smaller units, normally in a plastic tote which would go right off to the nursing and surgical units, bypassing the entire storeroom processes.

The following purposeless requirements for a sockless or JIT system add superfluous cost, land profit margin on a cost incontrovertible model; redundant line item, reckon of POs, flesh of deliveries, special packaging requirements, bulk shipment breakdown handling, armory carrying cost for O&M, additional staff required for the additional services. To express redu ced costs, distributors generally buy larger! orders from suppliers to suck 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 untroubled essay, order it on our website: OrderCustomPaper.com

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