Class 11 Afterclass - COMM 399-972 Logistics and Operations Management Class 11-1 Supply Chain Management HP Case and Postponement 1 Selling HP Deskjet

Class 11 Afterclass - COMM 399-972 Logistics and Operations...

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1 COMM 399-972 Logistics and Operations Management Class 11-1: Supply Chain Management - HP Case and Postponement Aug 11, 2015 1 Selling HP Deskjet in Europe 2
2 HP Deskjet Case: Background Manufacturing in Vancouver WA Plant is capable of high volume, high speed Can manufacture many different models “Stockless” factory: pull mode 3 DC’s: North America, Asia, Europe simple standardized process “Just -in- time”: Target Inventory level Brent’s two main issues High product availability while keeping inventory low Agreement among parties for the right level of inventory Retailers wanted low inventory level while providing high level of inventory DC had to carry high level of inventory from make-to-stock mode factory Transportation lead times Europe & Asia: 5 weeks US: 1 day 3 HP Deskjet Case: Analysis What are HP’s options? 4 Problem (Europe) Causes High inventory levels Low product availability Long Lead Time Printer Market is Competitive (requrie high service level) Product differentiation (six models) Demand variability
3 HP Deskjet Case: Options Rationalize Safety Stock 5 More inventory European factory Air shipment Better forecasting DC localization Short Term Options Long Term Options Advantages, disadvantages of each options?

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