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Hewlett-Packard – Supply the DeskJetPrinter inEurope
1. Develop an inventory model for managing the DeskJet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe. Using the data in the previous slide, apply your model and calculate the expected yearly investment in DeskJet printer inventory in Europe DC. [see excel document]To calculate the weekly mean of demand, we used 4.33 weeks for a month.Demand during EP: we got EP=LT + Review period=6 weeks, then we got n=12*4/6=8 to calculate the mean, we use n-1=7 to calculate std.dev. of the demand during EP.Pipeline Stocks: we used weekly mean*LT Cycle stocks: Review period* weekly mean 2.Compare your results from question 1 to the current policy of carrying one month’s average inventory at the DC.[see excel document]The total values for of all the separate models would be the same as those for the generic as now they are just combined for one all-inclusive product. However, the key difference is the the amount of safety stock which decreased 6487 units with the creation of a generic product.