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Hewlett Packard Case

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Hewlett Packard Case
Hewlett-Packard

Deskjet Printer Supply Chain

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Presented to

Professor D Krishna Sundar

Indian Institute of Management, Bangalore

On

October 29, 2010

In

Partial Fulfilment of the Requirement for the

Operations Management in the

Post Graduate Programme

By

Abhinav Sinha

Avinash Radhakrishnan

Kaustubh Fule

Rakesh P

Trideep Basu

1011005

1011017

1011030

1011047

1011066

Contents

Abstract 3
Introduction 3
HP 3
Printer Retail Market 3
Vancouver Division 4
Situational Analysis 4
The Supply Chain 4
Demand 4
Inventory Model for Existing Supply Chain 5
Problem Definition 5
Alternatives 5
Evaluations of Alternatives 5
Have higher levels of Inventory 5
Use Air Shipment to reduce lead time 5
Build another factory in Europe 7
Conclusion 7

Abstract

Hewlett Packard has its printer manufacturing plant in Vancouver, Washington from where it supplies Distribution Centres in the United States, Europe and in Far East. It does not maintain any inventory on its factory but instead maintains it on the Distribution Centres. The Distribution Centre in Europe has been facing a huge variation in demand for printers and is facing issues of stock-outs and over-stocking. This report describes the problems faced by Brent Cartier, the Manager for Special Projects in the Materials Department and prescribes potential solutions.

Introduction

HP

The Hewlett Packard Company (HP) was founded in 1939 as an electronic test and measurement equipment manufacturer. Over the next fifty years it diversified into computers and peripherals which now dominate its sales. The Peripherals Group was the second largest of HP’s six product groups with revenues of over 4 billion USD. The group’s divisions acted as Strategic Business Units for a specific set of products and its products included printers, plotters, magnetic and tape drives, terminals and network products.

Printer Retail Market

Worldwide market for
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