Braun Melsungen AG is a German company that offers products and solutions for infusion therapy, nutrition therapy, and pain management. The company safeguards the functionality of medical care that requires operations planning, including reliable and upgradeable supply chains to integrate smart IT solutions into the hospital processes. Braun Melsungen AG is also a leading company in the hemodialysis market. You are in charge of the supply and demand planning of filtration devices (let’s say filters) used in dialysis machines made by Braun Melsungen AG.

Braun Melsungen AG is a German company that offers products and solutions for infusion therapy, nutrition therapy, and pain management. The company safeguards the functionality of medical care that requires operations planning, including reliable and upgradeable supply chains to integrate smart IT solutions into the hospital processes. Braun Melsungen AG is also a leading company in the hemodialysis market. You are in charge of the supply and demand planning of filtration devices (let’s say filters) used in dialysis machines made by Braun Melsungen AG.

You aim to determine what the reason behind this can be, and how you can resolve it. To do so, you want to simplify as much as possible your current situation to deal with it easier. The reason of simplification is to find solutions quickly in line with reliable supply chains and decide if you are on the right track. In addition, it is more effective to start with a basic model and extend it, than to create a complex model and attempt to obtain useful information from it after it is completed. Let us now take a few general observations about how the business operates.

The only source of supply is in-house production of filters in the company.

The only source of demand is the sale to dialysis clinics in hospitals.

Inventory will never increase if there is no fabrication of filters.

The company cannot deliver filters to dialysis clinics in hospitals if there is not any inventory in its warehouse.

There is a current backup of 300,000 filters in the company stored in the case if there is no worker.

The process of training a newly-haired employee to be eligible for work takes two months under the most favorable conditions. Similarly, the process of ending the contract of a currently employee also required a two months’ notice.

A trained employee makes 1,000 filters per month and under the best-case scenario in which he productively works the entire 8 hours a day. However, in reality, an employee is 6.4 hours productive a day. Currently, 125 employees work in the company to fulfill a fixed demand of 100,000 filters per month.

Assume that manufacturing of filters is related in a make-to-stock (MTS) strategy with a “non- adoptive” manner. For such a manner, production is required to first fabricate filters and then sell. This is to say that the demands of filters are not immediately met when supply happens.

Your task is to draw a stock and flow diagram related to the non-adoptive supply and demand, and then insert its Vensim image in your Word document. Also, briefly explain variables used in this diagram and relationship between them

Answer rating: 100% (QA)

Diagram 2 Two months training time N Hiring rate per month T Production rate per trained employee per month D Fixed demand per month Variables Work Th... View the full answer