Suppose a hospital in the Tucson area calls and says it is facing an epidemic of

Question

Suppose a hospital in the Tucson area calls and says it is facing an epidemic of bacterial meningitis, It needs 2,000 doses as soon as possible. Assuming that Baxter can make no changes to the master production schedule quantities or orders booked, how quickly can it get the hospital the 2,000 doses? Be specific with regard to what quantities Baxter can ship and when.

c. Suppose the hospital says it needs the doses now, not in three weeks. What steps could Bacter Pharmaceuticals take to deal with this emergency? Who would Baxter need to talk to? (Hint: Consider the current booked orders and their sources.)

on- hand inventory at end of december:916 dose Month January February week 6 7 8 9 10 11 12 13 Forecasted demand 1000 1000 1250 1250 1500 1500 1750 1750 orders booked 1095 950 1100 963 1125 1095 1243 1208 project on- hand 3166 2166 916 3916 2416 916 2666 916 inventory 3071 2071 821 3821 2321 821 2571 821 master shedule 3250 0 0 4250 0 0 3500 0 Available to promise 1021 0 0 1067 0 0 1049 0

Explanation / Answer

Baxter has available to promise of 1021 units in 6th week of january and 1067 in 9th week of january. Those required vaccine should be shipped during these time period so that there wont be any supply related issue.

If the demand for the 2000 vaccine has to be delivered quickly and as soon as possible, either Baxter has to increase short term production to fulfill the order quantity. In any case 1021 units are already available to promise and for the remaining 979 units it can adjust shipment with the existing buyer.

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