Class 11-1 - Aug 11 2015 - COMM 399-972 Logistics and...

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1COMM 399-972Logistics and Operations ManagementClass 11-1: Supply Chain Management- HP Case and PostponementAug 11, 20151Selling HP Deskjet in Europe2
2HP Deskjet Case: BackgroundManufacturing in Vancouver WA3 DC’s: North America, Asia, Europesimple standardized processTransportation lead timesUS: 1 day3HP Deskjet Case: AnalysisWhat are HP’s options?4Problem (Europe)Causes
3HP Deskjet Case: Options5Short Term OptionsLong Term OptionsAdvantages, disadvantages of each options?HP Deskjet Case: Short Term Option -Safety Stock RationalizationMonthly Demand6BRANDMonthly DemandMeanStandard DevA42.332.4AB15830.15624.6AU4208.02204.6AA420.2203.9AQ2301.21168.5AY306.8103.1
47Annual Inventory CostAnnual Transport CostAnnual Purchasing CostAnnual Holding Cost= + +Annual Setup Cost= C*D= H * Total AVG Inventory(Q,r): = i C * (ாைொ+ ࠵?࠵?௅்+ ࠵? ∗ ࠵?࠵?)or (R,T):= i C * (்∗஽+ ࠵?࠵?௅்ା்+ ࠵? ∗ ࠵?࠵?)(Q,r) = S*;(R,T) = S*;Variable cost included in CAnnual Total Supply Chain CostVariable cost included in CFixed cost included in SIn HP case, S=0,

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