COMM204 Supply Chain Management Class Slides - COMM 204 Logistics and Operations Management Supply Chain Management HP Case and Postponement 1 HP

COMM204 Supply Chain Management Class Slides - COMM 204...

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COMM 204 Logistics and Operations Management Supply Chain Management HP Case and Postponement 1
HP Deskjet Case 2
HP Deskjet Case: Background Manufacturing in Vancouver WA High volume, high speed Many different models 3 DC’s: North America, Asia, Europe simple standardized process 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
HP Deskjet Case: Options Rationalize Safety Stock 5 More inventory European factory Air shipment Better forecasting DC localization Short Term Options Long Term Options
HP Deskjet Case Safety Stock Rationalization Monthly Demand 6 BRAND Monthly Demand Mean Standard Dev A 42.3 32.4 AB 15830.1 5624.6 AU 4208.0 2204.6 AA 420.2 203.9 AQ 2301.2 1168.5 AY 306.8 103.1
HP Deskjet Case Safety Stock Rationalization Example: Europe AB Monthly mean 15830.1 and std 5624.6 What should be safety stock assuming weekly replenishment and 98% service level?

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