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Responding to this the Meditech Company would be able to dispatch orders of the specific amount as reflected in the system to their dealers and affiliates in the different regions both in America as well as in the international market. This is the Japanese just-in-time system which can be used on the supply side as well to reduce the risks of stock-outs as the shipments for supplies and inventory would be delivered as and when required (Cook, 2007).
This would eliminate problems relating to service levels and standards as well as the stock-outs of new products in the introduction phase on part of the Meditech Company resulting in the establishment of a positive image reputation and brand of Meditech as an efficient & reliable company. “Collaborative planning on replenishment, in the form of vendor-managed inventory (VMI), is directly and positively related to manufacturer margins, while collaboration on new products and services is positively related to intermediate performance measures