Inventory model for managing the deskjet printers in europe

Hence the lead time in this case is only 1 week. Other Hints to the Case: In comparing different options e.

Inventory model for managing the deskjet printers in europe

If the lead time is 5 weeks with sea freight and 1 week by air, and if the review period is 1 week because of production cycles at the factory, what savings in average inventory are available?

Question 3:Evaluate the idea of supplying generic printers to the Europe DC and integrating the product by packaging the power supply and the instruction manual at the DC just prior to delivery to the European re sellers.

Annual Demand D Ave. The Safety Stock week of supplies decreases from 5.

Hp supply chain case study

The value of the transit inventory will also go down because their focus will be on the generic product. For your convenience, the European data from Exhibit 4 have been pre-entered into a spreadsheet posted on Connect, along with computation of the monthly mean, standard deviation, and coefficient of variation, and a template for further computations. While calculating annual inventory costs, remember to include pipeline in-transit inventory, safety stock, and cycle stocks. In terms of packaging, it will also decrease which is helpful to the environment. Supplying generic printers would considerably reduce safety stock from 22, to 15, The value of the transit inventory will also go down because their focus will be on the generic product. The best way to do that is to use the inventory models from class to calculate the total cost of inventory per unit for all DeskJet models under different options. There is a weekly shipment of printers to EU DC. This would create significant reduction on their freight cost and custom duties.

Using the data in the previous slide, apply your model and calculate the expected yearly investment in DeskJet printer inventory in Europe DC. Transportation time from Vancouver to EU takes a long 5 weeks.

The generic model is worth taking into consideration, because it decreases the amount of inventory and, as a result, costs.

What is your recommendation to HP? I tell you, air freight is expensive, but it is worth it. Inventory in Europe EU needs to be raised even further to maintain satisfactory product availability.

hewlett packard supplying the deskjet printer in europe case study solution

With that, it would also create higher local market presence because they will have the capability to meet the local standards in terms of language, electrical specifications, etc. Question 4: What is your recommendation to HP?

Rated 6/10 based on 77 review
Download
HP: Supplying The Desk Jet Printer to Europe