4 evaluate the idea of supplying generic printers to

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The Administrative Professional: Technology & Procedures
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Chapter 12 / Exercise 6
The Administrative Professional: Technology & Procedures
Rankin/Shumack
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4.Evaluate the idea of supplying generic printers to the Europe DC and integrating the product by packaging the power supply and the instruction manual at the DC just prior to delivery to the European
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The Administrative Professional: Technology & Procedures
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Chapter 12 / Exercise 6
The Administrative Professional: Technology & Procedures
Rankin/Shumack
Expert Verified
5.Instead of supplying generic printers to the European market, another alternative suggested by Kay Johnson (the Transportation Department supervisor at HP) was to air freight the printers to the European DC. Using air freight would cut the shipment time from 5 weeks to 1 week. She said (on p. 8 of the case) that “Shortening the lead time means faster reaction time to unexpected changes in product mix. Thatshould mean lower inventory and higher product availability. I tell you, air freight is expensive, but it is worth it.” Suppose that air freight costs an additional $10 per printer. Should this option be used instead of supplying generic printers? (Hint: Does the reduction in inventory cost per printer offset the increase in the transportation cost per printer?)Case memos that answer the above questions can get at most a “check” grade (2/3). In order to get “check plus” (3/3) you must answer (well) some of these extra questions:Extra Questions: 1.Are there alternatives for managing its inventory of DeskJet printers (beyond the scenarios in the required questions) that HP can/should consider? If so, what is the cost of inventory under these other scenarios?

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