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Hospital Material[Dollar Sign] Management
|March 10, 1990
Summary
A hospital ordered 1,000 custom envelopes but received 100,000 due to a computer error in order processing and printing scheduling. This case highlights potential issues in automated transaction systems.
Area of Science:
- Business Operations
- Supply Chain Management
- Information Systems
Background:
- A hospital initiated a telephone order for 1,000 custom-printed envelopes featuring its logo.
- The transaction involved a discrepancy between the ordered quantity and the delivered quantity.
Purpose of the Study:
- To analyze the causes and implications of a significant order over-shipment in a business transaction.
- To discuss the challenges arising from automated order processing and printing scheduling systems.
Main Methods:
- Case study analysis of a specific business transaction.
- Dialogue-based discussion of issues encountered by Dr. Decker.
Main Results:
- An over-shipment of 99,000 envelopes occurred, with 100,000 delivered instead of the 1,000 ordered.
- The over-shipment was attributed to a computer system error in order handling and printing scheduling.
Conclusions:
- Automated systems can lead to substantial errors if not properly managed and monitored.
- Effective communication and error-correction protocols are crucial in managing discrepancies in business transactions.