Hewlett Packard Company Deskjet Printer Supply Chain Case Study Solution

Hewlett Packard Company Deskjet Printer Supply Chain Case Study Solution-57
Introduction HEWLETT-PACKARD: DESKJET PRINTER SUPPLY CHAIN Case Analysis Presented to Professor D.Krishna Sunder Indian Institute of Management, Bangalore On November 07th, 2005 In Partial Fulfilment of the Requirements of the course Operations Management By Agila Reddi K (0511072) Arjun Gaur (0511075) Clare Kurian(0512004) Minu Rachel Philip(0511101) Nikhil Menon (0511105) Section B HEWLETT-PACKARD Introduction Desk Jet Printer was becoming one of Hewlett-Packard (HP) Company's most successful products.

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Conclusion If 12% is considered to be the carrying cost of inventory then it is more cost effective to just use the new data to forecast the demand and thus maintain 98% line item fill rate.

But if it is 60% transportation by means of air should be used.

Sales had grown steadily reaching around 600,000 units in 1990.

Uneven distribution of inventory was one of the key issues which needed to be addressed since in spite of having distribution centres (DC) filled with printers, organisations in Europe claimed that inventory levels needed to be raised to maintain satisfactory product availability.

Therefore it is assumed that the sales in the different regions are equal to the forecasted demands.

Hewlett Packard Company Deskjet Printer Supply Chain Case Study Solution Nyu Wagner Admissions Essay

This is then used to calculate the weeks of supply.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.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.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.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. Google(); req('single_work'); $('.js-splash-single-step-signup-download-button').one('click', function(e){ req_and_ready('single_work', function() ); new c.

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