The potential for an influenza pandemic requires that the resources to combat th

Question

The potential for an influenza pandemic requires that the resources to combat the crisis be available quickly and in the right place. A medicine with an 8 month production time is potentially a first line defense, and the company faces challenges in maintaining an appropriate supply network.

What factors drive the benefits of an influenza pandemic stockpile? The costs?

How might the current global situation evolve and how might that evolution affect the benefits of an influenza pandemic stockpile?

How should the company think about setting inventory, production and capacity targets?

How can the company keep their supply network alive? Should it?

If you could change the behavior of one of the stakeholders in the case, who would it be? How should the behavior change and with what intended effect?

Explanation / Answer

with the growing concerns on the likelyhood of the influenza pandemic, the health care systems have been challenged to determine the specific medical supplies that needs to be procured and stockpiled as a degree of preparedness. As the number of the cases increase, the just-in-time supply chains or the standard operating procedures would be really difficult to meet the growing demand. Hence the healthcare systems have been challenged to determine the medical supplies that needs to be procured. One of the most challenging jobs is to develop a prioritize list detailing all the supplies and essential quantities that need to be stock piled.

Benefits of influenza pandemic stockpile are -

1) Uncertainity on its occurance - since we are uncertain of its occurance, stockpiling the vaccines and drugs is very important

2) The development and the availability of the vaccines is to be considered. the time frame required is more. Hence, with the stockpile, they are readily available when needed

3) logistics play a major role.

4) Stockpile replenishment can be easily done.

The costs involved in the influenza pandemic stockpile is very high. since these vaccines are piled up to meet the contingencies, the costs involved in the stockpile are very high.

A company should think of setting up the inventory based on the previous years data. the data available would help the company plan for the production. Once the target for the production is set, inventory will also be monitored. All this is again inter linked with the capacity the company and its capacity targets. say for example if the capacity of the company is to produce 10,000 vaccines per day, that becomes the target per day. Based on the target, the production is planned accordingly. With all said and done, the previous inventory and the present stock is accountable for the overall stock piling.

Yes, company should keep the supply network alive. It should keep it alive by supplying atleast the minimum amount in the supplychain. the minimum amount in other words means, surviving on a lean logistics plan. The supply network has to be kept active by communicating in the supply chain network.

If i got to change the behaviour of one of the stakeholders in the case, then i would change the behaviour of the most lethargic stakeholder in the system. Unless and untill they change their behaviour and mindset, nothing changes.. Hardwork only pays.

The stakeholder who is a bottleneck in the entire system has to be changed first. If the bottleneck is removed or changed, everything will fall in place. Remove the bottleneck in the system and things would move on a faster pace and on a better note. Then the company will also succeed.

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