Hewlett Packard Company Deskjet Printer Supply Chain Case Study Solution

Hewlett Packard Company Deskjet Printer Supply Chain Case Study Solution-24
HP was the market leader in US while Cannon was in Japan and Europe had competitors like Epson, Manisman-tally, Siemens and Olivetti.The Vancouver Division of HP (the personal printer activities were consolidated) introduced the Kanban process and converted to stockless production which also reduced cycle time and reduced inventory time from 3.5 months to 0.9 months. Middle The total sales are 600,000 units which are close to the total of the forecasted demands.The teaching purpose is to discuss inventory analysis and/or to discuss the organizational challenges companies face in implementing supply chain solutions.

HP was the market leader in US while Cannon was in Japan and Europe had competitors like Epson, Manisman-tally, Siemens and Olivetti.The Vancouver Division of HP (the personal printer activities were consolidated) introduced the Kanban process and converted to stockless production which also reduced cycle time and reduced inventory time from 3.5 months to 0.9 months. Middle The total sales are 600,000 units which are close to the total of the forecasted demands.The teaching purpose is to discuss inventory analysis and/or to discuss the organizational challenges companies face in implementing supply chain solutions.

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The top management prefers to maintain the DCs in a warehouse mode as it will difficult to manage the work in the DCs.

Additional expenditure will be incurred in setting up support processes.

In Europe, high product variety was making inventory levels especially high.

HP considered several ways to address the inventory issue: air freighting printers to Europe, developing more formalized inventory planning processes, or building a factory in Europe.

This will help reduce the lead time by reducing the factory cycle time.

These should also enable the DC to be more flexible. The actual savings cannot be calculated from the given data and more information is required.

Another alternative that can be considered is inventory pooling by building up finished good inventory in the factory.

Hewlett-Packard Company Deskjet Printer Supply Chain (A) Table of Contents Introduction: 3 Problem identification: 3 Recommendations and solution 5 Strategies to be adapted: 5 A. Quick response can be used, along with improved and more accurate forecasting: 6 II.

monthly mean * shipping cost/unit * 12 = 18139106.1$ Taking 60% carrying costs Option Monthly Mean Monthly Std. Lead Time Reorder Interval SD (L R) Safety Stock Average Inventory Inv Cost EUROPE A 42.3 32.4 42 7 41.4 84.9 89.8 258684.6 AA 420.2 203.9 42 7 260.6 534.2 583.2 1679699.6 AB 15830.1 5624.6 42 7 7188.3 14736.1 16583.0 47758916.4 AQ 2301.2 1168.5 ..more.

Conclusion This will be a long term investment and depends on the scale of demand in Europe.

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