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Name Shekhar Kumar

Roll Number IPMX05053

Q.1 What changes do you recommend to CVSs existing pharmacy fulfillment process? What IT changes are required to fulfill your changes? A. Any change with an intention to bring improvements in CVSs existing pharmacy fulfillment process must ensure 1. Enhancing overall customer satisfaction 2. The safety of the customers. 3. Decrease the waiting time for customers during pick-up. The case demonstrates problems at almost every stage of fulfillment process. Following changes can be introduced into the fulfillment process along with the IT changes wherever necessary:
1. Combining drop-off, data Entry, and insurance operations The data entry operation can be done when the customer turns up for drop-off. With the data entry operation completed during drop-off, insurance check for the customer can be done at the time of drop-off itself, as there is no dependency of insurance check on DUR. This would help identify the problems at the very early stages of fulfillment. The practice of picking up the script only an hour before the pick-up is faulty in totality. As the pharmacy gets crowded at certain time of the day for pick-up and drop-off, this practice creates uneven distribution of work. When the data entry is done at the time of drop-off the script can be put in queues immediately so that the customer order is kept ready much in advance. Also this would help the staff at CVS inform the customer much in advance in case the inventory is insufficient to fulfill the order. This would help in saving the time of customer, who as per the current set-up comes to know about the unavailability of the medicines only at the time of pick-up. Use of IT IT can help in a significant way to improve the fulfillment processes at CVS. IT can make processes simple and intuitive. The data entry operation can be performed using IT to enable CVS in formulating a line in which the order can be kept as when they are received. 2. DUR and QA can be performed at the sometime followed by production step By nature DUR is more of a part of Quality Assurance (QA) step and hence can be combined with QA step. If there are any problems identified during the QA or DUR state, the customer should be informed immediately on the contact number provided by the customer.

Use of IT IT can help create the database of all CVS customers as when they come to avail their first service. This database can help in doing drug-drug check. IT would help in standardization of the processes and help in using the customers data as an information resource to be used when they come back for during DUR state. 3. Improvement at Pick-up state Looking at the gathering at the CVS pharmacy in post working hours, CVS should separate the pickup station from drop-off station. Also the staff available at the pick-up station should be able to explain the customer in case of any problems identified in the script.

Q.2 What percent of pharmacy defectors from CVS in 2000 were light versus heavy user? A. Suppose Light Defectors = X, and Heavy Defectors = Y Total Customers left in 2000 = 7.2mn X + Y = 7.2 ------Equation 1

Total Annual Prescriptions left with defectors in 2000 = 55mn 5X + 40Y = 55 ------Equation 2

Solving Equations 1 and 2: Multiplying Equation 1 with 5 on both sides and subtracting equation 2 from 1: 5X + 5Y = 36 5X + 40Y = 55 -35Y = -19 Putting the values of Y in equation 1: X = 7.2 0.542 = 6.658mn Thus total number of light users = 6.658mn and total number of heavy users = 0.542mn. Y = 0.542mn

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