To arrive at the decision on when to order and how much to order, company should determine the reordering point and EOQ. Unfortunately, inventory growth has tracked sales growth closely. They found duplication in safety stock that could be significantly reduced without compromising customer service.
Another issue is the choice of safety stock probability for the model. Evaluate the idea of supplying generic printers to the Europe DC and integrating the product by packaging the power supply and the instruction manual at the DC just prior to delivery to the European re sellers.
Resellers want to carry as little inventory as possible. Forecasting demand in Europe, though, is a significant problem. If D is annual demand, h is h Shrink-wrap the complete order and label it. This long lead-time made it difficult to respond quickly to fluctuations in demand. Shipments to non-US centers involved transit time of one month.
Receive complete products from various suppliers and stock them. There are two key stages in the manufacturing process: Under this policy, the printer would be redesigned so that a generic printer could be manufactured and shipped without, for example, an installed power supply unit.
WINO explicitly evaluates the tradeoff Hewlett packard deskjet supply chain case inventory investment and customer service. Consequently there has been increasing pressure for HP as a manufacturer to provide high levels of availability at the DC.
They are to recommend a method for calculating appropriate safety stock levels for various DeskJet models carried in the European DC. Now, however, it seems that the increasing difficulty of getting accurate forecasts means the safety stock rules should be revisited.
The long shipment time to Europe is due to ocean transit and the time to clear customs and duties at port of entry. What is the implied service level associated with this cost? The plant sends a weekly shipment of printers to the DC in Europe.
Focus on the impact on DC inventory investment in this analysis. The manufacturing group has been very successful in reducing the uncertainties caused by delivery to the European DC. Ignore your answer in 1.
The transportation time from Vancouver to the European DC is three weeks. With that, it would also create higher local market presence because they will have the capability to meet the local standards in terms of language, electrical specifications, etc.
Management is very interesting in studying the value of this approach as it could be applied to DeskJet printers. There are four process stops: Pick the various products needed to fill a customer order.
These printers were shipped to three distribution centers, two of which were non-US Europe and Far East. HP hopes this new methodology will solve the inventory and service problem. What is your recommendation to HP?
The first modeling efforts focused on the supply chain for the PC and Deskjet-printer divisions.
However, they must implement an effective quality assurance policy to continue providing products with same quality as the ones being manufactured at the Vancouver manufacturing center. For the European Market six different versions are currently produced.
What is the average inventory carrying cost? Other Recommendations Air shipment should be used in transporting the printers. This concept, "design for localization," is closely related to design for "delayed-product-differentiation.
The DeskJet printer fits well into the standard process. Rather than the factory making products specific to a country, generic products could be produced and shipped to Europe. In the past, the target inventory levels at the DCs were based on safety stocks that were a result of some judgmental rule of thumb.
Although this extra processing does not require much extra labor, it is difficult to accommodate in the standard process and disrupts the material flow.Hewlett-Packard Deskjet Printer Case - Discussion Guide.
HP Report. Case HP Deskjet Printer Supply Chain. HP Case Analysis. HP DeskJet Printer Supply Chain Integrated circuit manufacturing Asia-Pacific distribution center Supplier Dealers Supplier Printed circuit assembly & test/5(3).
HP Supply Chain Woraphan Atikomtrirat Since Hewlett-Packard® was founded inthe company has been a technology pioneer and has developed a reputation for exceeding customer expectations by providing the most innovative technology products available. Hewlett-Packard transforms territory and quota planning across the globe with Anaplan Watch videos Technology Industry One million bookings every day Fact $52 billion Revenue Sales Use Case Challenge Before Anaplan, there was a gap between the design and implementation of HP’s annual territory and quota assignments.
Hewlett-Packard Case Assignment Iman Abdur-Rahim Prof. Brian Grizzell Principles of Management BUS August 19th, The first problem that I noticed when I read the case was the fact it mentioned that HP was under managed.
InHP had 84, employees while Carly Fiorina was Chief Executive Officer ¹. Hewlett-Packard’s. Deskjet Printer Supply Chain. Cases (A) & (B) Discussion Guide & Answers.
Ranjan Ghosh. HP’S DESKJET Industry characteristics: competitive, fast. Hewlett-Packard Co.: DeskJet Printer Supply Chain (A) Hewlett-Packard: Creating a Virtual Supply Chain (A) Hewlett-Packard: Performance Measurement In The Supply Chain Hewlett-Packard: Creating a Virtual Supply Chain (B) Solectron: From Contract Manufacturer to Global Supply Chain Integrator Managing Supply Chain Inventory: Pitfalls and Opportunities SeeCommerce: Enhancing Supply Chain.Download