Journal of the International Academy for Case Studies (Print ISSN: 1078-4950; Online ISSN: 1532-5822)


Megapharm: Production Efficiency or Customer Prioritization

Author(s): Ricardo M. Pino

The author presents a study case that allows analyzing first, the pros and cons of two antagonist operations programming systems for make-to-order products: (a) FIFO with main customers’ prioritization; and (b) on a monthly basis, according of the orders received that month. Secondly, it allows the analysis of the difference between productivity improvement and competitiveness improvement. Finally, the case allows the analysis of the vertical integration between of the two main members of a supply chain: The producer and the distributor; although, in this particular case, the distributor owns the product brands and is also owns the producer company. The case allows the use of basic statistical tools, as Pareto analysis and forecasting. This case is to be used in supply chain management courses at MBA programs as well as in other post-graduate courses. It covers the topics of vertical integration and strategic decision making regarding a supply chain structure configuration.