Sales had grown steadily reaching aroundunits in 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. Also there seemed to be an issue of requiring the buy-in of the various parties on what was the right level of inventory to be maintained.
As a result, some localized product lines within the European distribution center are out of stock, while other product lines have excess inventory.
The causes of the stock overage and underage are as follows: For Europe, it takes 1 week for manufacturing and 5 weeks for shipping. The distribution centers exist on three continents, each with several more localized configurations. Vancouver manufacturer operates only as a manufacturer, and hence, optimizes its operation to hold no inventory.
Meanwhile, the European distribution center operates only as a distributor, and therefore only manages inventory levels and will not perform any assembly work. If both players would broaden their viewpoints to the entire supply chain, then they could perform final, localization assembly tasks at optimal points in the supply chain to minimize stock outages or overages.
Essentially, it is optimal to postpone localization assembly until the moment demand for a localized configuration is known, which is in the European distribution center, closest to the customers that drive demand.
Risk pooling would take place within the European distribution center to greatly reduce the safety stock for low-volume product lines for small countries where demand is most variable. What are the advantages and disadvantages of each? Ship to European distribution center by air rather than by sea: Considering all the models Safety stock is units lower when shipping by air to Europe- Disadvantages: Risks are pooled across all lines in the European distribution center, thus reducing the required safety stock, particularly for low-volume skus going to small countries.
European distribution center would have to stock localized items separately, and would have to change processes to accommodate assembly tasks. Since both players are within the same company, they could switch from a periodic review to a continuous review via online data exchange to reduce order lead time as well as order cost.
Order lead time and costs would be reduced, and both players would benefit.
Minimal, aside from process change. To further reduce total cost of operation, HP may want to further consolidate all languages within a single manual, standardize the power supply, leaving only the power cord and a voltage regulator switch as the variables for localization.
The costs per manual and per power supply may increase, but the more generic units allow assembly costs to be reduced and risks to be pooled, thus reducing inventory costs i. Though Bill of Material is not provided in the case, stocking localized manual and power cords is less expensive than stocking entirely localized skus.
Cost per manual and per power supply may increase. Consider a periodic-review, order-up-to model to evaluate the various alternatives available air shipping and ocean shipping to Brent Cartier to address the inventory and service problem. Use the same methods to evaluate the inventory savings associated with a generic European product that would be assembled-to-order in the European distribution center under each shipping option.
If you were Brent Cartier, what would you recommend? How would you expect the different stakeholders to feel about this proposal?
How would you sell your recommendation to these stakeholders? Specifically, HP should postpone localization assembly until the moment demand for a localized configuration is known, which is in the European distribution center, closest to the customers that drive demand.
We would expect Vancouver manufacturing team to protest against Distribution centers performing assembly, as they would think they would be losing control on the manufacturing.
They would think why the distribution centers, who cannot provide proper forecast are taking away some of their tasks.HP Case Study. A Case Regret Help, Case Study Fruit Analysis Hewlett Packard Co DeskJet Mi Supply Chain A Case Remarque. Hp deskjet case web ton.
In one instance, designers initially balked at creating a generic DeskJet printer for both Mac and DOS users, because doing so would add to the cost of materials needed to make the product.
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.
The case can be used to discuss inventory analysis and/or to discuss the organizational challenges which companies face in implementing supply chain solutions. The exhaustive list of topics in Operations Management case studies in which we provide Help with Homework Assignment and Help with Project is as follows: Hewlett Packard - Supplying the Deskjet Printer in Europe; Supply Chain Management Assignment ; Homework Help.
Case Study Company: HP Information technology Worldwide 49, Industry: • End-to-end process control and supply chain expertise were paramount in ramping delivery of production-quality parts at scale HP and other customers to improve final product design and development • Jabil currently produces 50 parts for HP printers • Jabil.
MBA Case Study Analysis and Solutions, Deskjet Printer Supply Chain (A) The inventory crisis has led to the advent of supply chain management solutions that Hewlett-Packard – Supplying the DeskJet Printer in Europe Hewlett-Packard – Supplying the DeskJet Printer in Europe Focus on the impact on DC inventory in this analysis Case Questions 4.