399_SC_HPcasex - COMM 399 Logistics and Operations Management Supply Chain Management HP Case and Postponement 1 HP Deskjet Case 2 HP Deskjet Case

399_SC_HPcasex - COMM 399 Logistics and Operations...

This preview shows page 1 - 8 out of 17 pages.

COMM 399 Logistics and Operations Management Supply Chain Management HP Case and Postponement 1
HP Deskjet Case 2
HP Deskjet Case: Background Manufacturing in Vancouver WA High volume, high speed Many different models 3 DC’s: North America, Asia, Europe simple standardized process Transportation lead times Europe & Asia: 5 weeks US: 1 day 3
HP Deskjet Case: Analysis What are HP’s options? 4 Problem (Europe) Causes High inventory levels Low product availability Long leadtime Too many models Inaccurate forecasts Reseller don’t want to hold inventory
HP Deskjet Case: Options Rationalize Safety Stock 5 More inventory European factory Air shipment Better forecasting DC localization Short Term Options Long Term Options
HP Deskjet Case Safety Stock Rationalization Monthly Demand 6 BRAND Monthly Demand Mean Standard Dev A 42.3 32.4 AB 15830.1 5624.6 AU 4208.0 2204.6 AA 420.2 203.9 AQ 2301.2 1168.5 AY 306.8 103.1
HP Deskjet Case Safety Stock Rationalization

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture