2. What are the constraints on making decisions based on economics alone at Arnold Palmer
Hospital? 3. What role do doctors and nurses play in supply chain decisions in a hospital? How is this
participation handled at Arnold Palmer Hospital?
4. Doctor Smith just returned from the Annual Physician’s Orthopedic Conference, where she saw a
new hip joint replacement demonstrated. She decides she wants to start using the replacement joint
at Arnold Palmer Hospital. What process will Dr. Smith have to go through at the hospital to
introduce this new product into the supply chain for future surgical use?
Chapter 11: Arnold Palmer Hospital's Supply Chain. Review this video and answer the
discussion questions in 2 pages or less.
https://www.youtube.com/watch?v=1ELl4CRts6Y
1. How does this supply chain differ from that in a manufacturing firm?
This supply chain differs from that in a manufacturing firm for several reasons. In a
manufacturing firm, the management focuses on innovating new products and maintains
efficiency through buyer-vendor collaboration. However, in service industries like Arnold
Palmer Hospital, the majority of decisions are made through the Medical Economic Outcomes
Committee where the medical and nursing staff are involved in the negotiation and buying
process. In Arnold Palmer Hospital, the negotiations are completely based on the quality
problem with some manufacturers and give the orders for the lower-cost bidder. They also
develop new products for their operating rooms in collaboration with manufacturers along with
long-term contracts, more control of the product, blanket purchase orders, and other benefits,
which are substantial.
2. What are the constraints on making decisions based on economics alone at Arnold Palmer
Hospital?
There are a number of constraints on making decisions based on economics alone at
Arnold Palmer Hospital. First, Medical Outcomes Committee is involved in the buying process