Week 6_HP_1.pptx - About Hewlett-Packard \u2022 Founded in 1939 by Hewlett and Packard \u2022 Headquartered in Palo Alto California \u2022 Broad product lines

Week 6_HP_1.pptx - About Hewlett-Packard u2022 Founded in...

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About Hewlett-PackardFounded in 1939 by Hewlett and Packard.Headquartered in Palo Alto, California.Broad product lines: electronic test and measurement equipment, computers and peripherals products . . .In 2011 HP ranked 11 in Fortune 500 companies, had about 324,600 employees, revenues over $127 billion USD.Reputed for its stable environment and management culture.1
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HP: DeskJet Printer Supply Chain (A)CharacteristicsIndustryProductSupply ChainRapidly changing technologyHigh qualityVancouver --- USA(Oregon) EuropeAsiaHighly competitive commodity productHigh reliabilityChanging channel
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The Problem Faced6The Problem:ReasonsInventory level going upService level going downInventory imbalance at distribution centersLong leadtimeHigh forecast error (bullwhips, localized versions)Organizational incentive alignment
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The Root of the Problems7Product VarietyForecast nightmareGreater chance of having quality problemsLess economies of scale in productionHigh inventory and low service levelsHigher after-sales support costs
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