Final - Wang.Miaoshi- HP.docx - Hewlett-Packard Company DeskJet Printer Supply Chain Case Study Miaoshi Wang 2 What are main problems\/issues and their

Final - Wang.Miaoshi- HP.docx - Hewlett-Packard Company...

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Hewlett-Packard Company DeskJet Printer Supply Chain Case Study Miaoshi Wang 2. What are main problems/issues and their causes? 1) The first issue is the conflict between satisfying customer needs regarding product availability while minimizing inventory. Especially in EU DC – the warehouse already full of printers, but they claimed that they need more to fulfill customers’ needs. There were two reasons led to this issue – A. The supply chain strategy led to overstocked products in DCs. The demands of printers in the North America, EU, and Asia were varied; however, the manufacturing and final localization all done in Vancouver Division, then distributed to the DCs. Also, based on the Zero Inventory strategy and Make-to- stock strategy in the manufacturing process, all finish goods were delivered to DCs directly, so the DCs take all printer inventories. In the distribution process, HP’s sales mainly depend on dealers. Since the highly competitive in the printer market, however, dealers were not willing to stock many printers of one single brand. A large number of printers were stock at EU DCs but can’t be distributed
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