Reference no: EM13993527

Saddleback Hospital currently receives more than 50,000 boxes of pharmaceutical supplies per month. All of these items are manually inspected and logged to ensure adequate receipt prior to payment. Six (6) full-time hospital employees in the purchasing department manage receipts and deliveries, while 2 full-time staff manually record and track incoming goods on a chart. You receive an email from one of your colleagues about a new software product that her hospital is using, that is capable of automated scanning of bar codes that can take the place of all of the workers who are engaged in manual tracking, thus allowing you to deploy or retrain them to work in other needed areas of the hospital. The board of directors has asked for your opinion and analysis before they approve the purchase. Write a one page business memo to the board of directors with your recommendation that considers the technology and whether a capital investment should be made to substitute capital for labor? The CEO has asked that you include aspects of worker productivity, price of the new software, utilization life, amortized cost, projections for new productivity post-integration and delta in productivity metrics compared to cos.