Supply Chain Management Group work 2: HP DESKJET PRINTER SC Group 11: Claudia Jongerius S120008 Sjoerd Groot S120011 Chris Louman S120035 Tom van der Laan S120042 PTMSc16: June 6th 2013 1. Consider the solution alternative - placing scientifically based inventory system‚ (say Periodic review system) - to solve inventory-service crisis. Estimate cycle inventory‚ safety inventory and pipeline inventory‚ for all desk jet printer models‚ to achieve 95% cycle service level (under
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very strategic importance to future growth of HP. I recommend full review of inventory management system for desk jet printers & design a strategy to implement processes leading to postponement of product differentiation‚ in order to reduce inventory imbalance & satisfy customer demands. The short term strategy will include recalculation of safety stock‚ reorder points & reorder quantity‚ Identification of certain models that needs to discontinued and improvement in demand forecasting system. New
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SGSCMF-003-2001 HP DeskJet Printer Supply Chain Global Supply Chain Management Forum GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY GSS3B MAY 2001 Hewlett-Packard Company DeskJet Printer Supply Chain (B)1 Brent Cartier‚ Manager of Special Projects in the Materials Department of the HewlettPackard (HP) Vancouver Division‚ was enjoying a hot cup of coffee after lunch on the long flight to Germany. The last few days had been exhausting. Meetings‚ conferences calls and non-stop phone calls
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$739 million. In 1988‚ the Deskjet printer was introduced and had become one of HP’s most successful products‚ with sales of 600‚000 units/$400 million in 1990. Summary This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a so-called “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers in Europe and Asia-Pacific‚ customer
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1. Develop an inventory model for managing the DeskJet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe. Using the data in Exhibit 17.13‚ apply your model and calculate the expected yearly investment in DeskJet printer inventory in the Europe DC. Answer: 1. In order to calculate the yearly investment in DeskJet printers‚ we calculate the yearly investment of the printers separately and then add them together to get the total yearly cost. There
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Case: Hewlett-Packard-Supplying the Deskjet Printer in Europe The DeskJet printer was introduced in 1988 and has become one of Hewlett-Packard’s (HP’s) most successful products. Sales have grown steadily‚ reaching a level of over 600‚000 units in 1990. Unfortunately‚ inventory growth has tracked sales growth closely. HP’s distribution centers are filled with pallets of the DeskJet printer. Worse yet‚ the organization in Europe claims that inventory levels there need to be raised even further
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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. Postponement or Delayed Customization: 5 B. R&D in Europe and Asia 5 C. Investing in information: 6 Strategies to be altered: 6 I. Quick response can be used‚ along with improved and more accurate forecasting: 6 II. Ordering quantity that would allow HP to provide a certain service level:
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HP DESKJET 1. HP is in an inventory crisis. What should it do? Qualitatively evaluate the options given in case A: (a) Build a new European factory‚ (b) Utilize air shipments for Europe (c) Do better forecasting (d) Reduce customer service by lowering fill rate (e) Keep more inventory. a) HP has 3 distribution centers. Those of Europe and Asia Pacific Distribution Centers are in an inventory crisis. Especially crisis is becoming deeper in European Distribution Center. Is it a solution
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Inventory management : Inventory management Introduction : Introduction Inventory management is the system devised and adopted for controlling investment in inventory. The aim of inventory management is to attain a healthy balance between the cost of having inventory and the cost of not having inventory. Bad management of inventory may lead to overstocking or stock outs. Types of inventory : Types of inventory Direct inventories Raw material Work in Progress Finished goods Indirect inventories
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goods is constant‚ the inventory model is called deterministic. However‚ when the demand rate is not constant and not deterministic‚ the inventory model is called probabilistic and is best described by a probability distribution. The minimum-cost order quantity and re-order policies are based on the assumptions of the demand rate. PROBABILISTIC INVENTORY MODELS 1. A single-period inventory model with probabilistic demand The single-period inventory model refers to inventory situations in which
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