Poor Prediction and Production Planning - Case Study Example

The paper "Poor Prediction and Production Planning" is a perfect example of a case study on business. Poor prediction and production planning have led to insufficiency in order to fill time for the production line. The situation is evident in Meditech firm, which is a company that produces and supplies endoscopic surgical equipment. The poor prediction of the demand led to a shortage of the company’s goods in the market (Meditech 22). Meditech’s products are cheaper and innovative compared to its competitors. As a result, the demand for its goods is very high in the market. However, since the firm had not planned to meet the high demands in the market, it has been experiencing enormous pressure. Each time the firm introduces new products, they are widely accepted. However, customers become disappointed and frustrated due to the firm’s poor delivery services. For instance, after ordering the company’s products, its customers have to wait for more than six weeks before getting their goods. Poor delivery services in the health system can lead to the deaths of many individuals. It is important to note that such factors destroy the firm’s reputation in the market (Meditech Surgery 18). Meditech’s inability to effectively forecast the demand for its goods is caused by the inability to track the information required to measure its forecasts effectively. The firm lacks past forecast and demand information. The poor production planning was also caused by high inventory levels. Panic ordering is also a factor that contributed to the high demand from Meditech’s goods. The delayed delivery of goods makes customers order more products than they need hoping that the firm will deliver some of their orders.