Provide us with a drawing of the outbound product flow.

Specifically, where do products go

after they are manufactured? Be sure to include all locations that are mentioned in the case.

Outline your suggestions as to possible improvement you would suggest to this product flow.

 What do you want to change?

 What do you think the changes would improve?
 How do you think the improvements will result in positive financial outcomes?
One each of these points above, please be as specific as possible.

What to Change:

1. On-site Sterilization: MTC should consider bringing the sterilization process in-
house or partnering with a nearby facility to reduce transit time and complexity in the supply
chain. This would eliminate the need to send products back to the manufacturer for
sterilization.

Expected Improvements:
 1. Reduced Transit Time: On-site or nearby sterilization would significantly reduce
transit time, ensuring that sterilized kits can be quickly sent to the next tier in the supply chain.
This would improve overall supply chain efficiency and responsiveness.

Positive Financial Outcomes:

1. Lower Inventory Costs: With reduced transit time, MTC can maintain lower levels
of inventory in the supply chain, leading to cost savings in terms of carrying costs.

2. Faster Revenue Recognition: Products can be recognized as revenue more

quickly since they spend less time in transit and sterilization. This can positively impact cash
flow and financial reporting.

By making this change, MTC can streamline its product flow, reduce operating costs, and
improve its financial outcomes by optimizing inventory management and revenue recognition.