Prepared 2 - HP case - 1 Industry product supply chain characteristics Industry characteristics o HP DeskJet Printer Supply Chain operates printers o HP

Prepared 2 - HP case - 1 Industry product supply chain...

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1. Industry, product, supply chain characteristics. Industry characteristics o HP DeskJet Printer Supply Chain operates printers o HP organized partially by product group and partially by functions o Highly vertically integrated o Localization strategy o The market was mature in the US and Western Europe but was still developing in Eastern Europe and in the Asia-Pacific region Product characteristics o Three technology segments: impact/dot matrix, inkjet and laser o Customization is done in Vancouver many weeks before the products ship to Europe o Leading technology and leading the inkjet market in the US Supply chain characteristics o Manufacturing in Vancouver and shipping to US, Europe and Asia o Centralized manufacturing o Operating DCs in a make-to-stock made 2. What are the main causes of the so-called inventory/service “Crisis” o The first cause was the demand variability of printers o The large variations in printer models in Europe from another issues for the inventory crisis as different models require customized assemble. The sum of individual models increases the safety significantly o
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