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CASE: Hewlett-Packard-Supplying the Deskjet Printer inEuropeIntroduction and BackgroundThe DeskJet printer was introduced in 1988 and has become one of Hewlett-Packard's most successful products. Sales have grown steadily, reaching a level of over 600,000 units in 1990. Unfortunately, inventory growth has tracked sales growth closely. HP's distribution centers are filled with pallets of the DeskJet printer. Worse yet, the organization in Europe claims that inventory levels there need to be raised even further tomaintain satisfactory product availability.The DeskJet Supply ChainThe network of Supplier, manufacturing facility, distribution centers, dealers, and customer’s makeup the deskjet supply chain. Manufacturing is done by HP, in Vancouver.Two stages of manufacturingPrinted circuit board assembly and test (PCAT)Final assembly and test (FAT)
The Three Distribution Centers Are North America, Europe, Asian-Pacific (shipping to Europe and Far East by ocean)Selling the DeskJet in Europe requires customizing the printer to meet the language and power supply requirements of the local countries, a process known as “localization.”Problems1.HP's distribution centers are filled with pallets of the DeskJet printer.