COMM 204 Assignment 3 Excel 2 2 - Exhibit 4 DeskJet Demand Data from Europe Europe Options A AB AU AA AQ AY TOTAL NOV 80 20,572 4,564 400 4,008 248

COMM 204 Assignment 3 Excel 2 2 - Exhibit 4 DeskJet Demand...

This preview shows page 1 - 4 out of 4 pages.

1Exhibit 4: DeskJet Demand Data from EuropeNOVDECJANFEBMARAPRA80 - 60 90 21 48 AB20,572 20,895 19,252 11,052 19,864 20,316 AU4,564 3,207 7,485 4,908 5,295 90 AA400 255 408 645 210 87 AQ4,008 2,196 4,761 1,953 1,008 2,358 AY248 450 378 306 219 204 TOTAL29,872 27,003 32,344 18,954 26,617 23,103 Europe Options
Background image
2MAYJUNJULAUGSEPOCTMean- 9 20 54 84 42 42.313,336 10,578 6,096 14,496 23,712 9,792 15830.1- 5,004 4,385 5,103 4,302 6,153 4208.0432 816 430 630 456 273 420.21,676 540 2,310 2,046 1,797 2,961 2301.2248 484 164 363 384 234 306.815,692 17,431 13,405 22,692 30,735 19,455 23108.6
Background image
3Std. DevCoeff of Var32.476.6%5624.635.5%2204.652.4%203.948.5%1168.550.8%103.133.6%6244.027.0%
Background image
4Question 1:Hewlett-Packard has a printer manufacturing division in Vancouver, Washington. The company realized that its Vancouver division needs high volume and high-speed production to be successful in the market.According to the case however, the variability of demand, the production of six different models, long lead times, and high competition in the market is leading to the division’s high inventory levels and low availability of products. Question 2: HP has a periodic inventory system. The tables below represent an optimal inventory policy.LT5 weeksReview period1 weekExposure period (EP)6 weeks4.33 weeks/moService Level98%z2.05Holding Cost =62.50 I25%Unit cost$250 0.3856813MonthlyWeeklyDemand during EPSafety St.PipelineCycle St.Total Inv1.3856813BrandMeanStd devMeanStd devMeanStd devUnitsUnitsUnitsUnits(units)(units)(units)(units)(units)(units)(units)(units)(units)(units)A42.332.49.815.658.638.178.348.84.9132.1 Based off the given data, the avg inventoryAB15830.15624.63655.92703.021935.56621.013597.918279.61828.033,705.4 position is calculated. Given a holding costAU4208.02204.6971.81059.55830.92595.15329.84859.1485.910,674.8 of $62.50, the total annual inventory cost willAA420.2203.997.098.0582.3240.0492.9485.248.51,026.7 be $3245363.51. The computations assume aAQ2301.21168.5531.5561.53188.71375.502824.92657.3265.75,747.9 periodic review system. AY306.8103.170.949.5425.1121.4249.3354.335.4639.0 Total23,108.66244.05336.93000.732021.27350.222573.126684.32668.451,925.8 Total Inventory cost:3245363.514Inventory Cost/unit shipped:11.70330351Question 3: Use of the "current policy", where inventory is kept equal to one month's average sales.LT5 weeksReview period1 weekExposure period (EP)6 weeks4.33 weeks/moService Level98%z2.05Holding Cost =62.50 I25%Unit cost$250 MonthlyWeeklyDemand during EPSafety St.PipelineCycle St.Total InvZ-ScoreNotice that the "current policy" produces a BrandMeanStd devMeanStd devMeanStd devUnitsUnitsUnitsUnitstotal inventory cost of $3112055.98,(units)(units)(units)(units)(units)(units)(units)(units)(units)(units)which is smaller than question 2's inventoryA42.332.49.815.658.638.137.448.84.9132.1 0.9810125 cost of $3245363.51. However, this is at the AB15830.15624.63655.92703.021935.56621.014002.118279.61828.033,705.4 2.1148093 reduction of a 98% CSL down to the cum. prob.
Background image

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture