Teylan, Aj V.
Hewlett-Packard is an established company manufacturing printers, especially DeskJet printers. HP has a plant in Vancouver which customizes DeskJet printers to be localized for the local market. After the manufacturing of DeskJet printers in Vancouver, it is being shipped to Europe for about four to five weeks. And when the products arrive in Europe, the European Distribution Centers found out imbalance in the inventory of the DeskJet. There are too many stocks customized for a particular market and very few for other markets. So in the 90’s, HP faced an Inventory Crisis. The uncertainty of demand made it hard for them to forecast which model to produce. And since they have variety of product because of localization, it is harder to manage inventory. A lead time of four to five weeks also made forecasting a difficult job and it also caused higher safety stocks. Another cause of the crisis is that the people in HP got their noses up. No one wants to talk to the other. There’s a poor communication inside the organization. If they don’t want to ride on a plane to go to Europe or vise versa, they can use Skype, or yahoo messenger or a simple phone call or even a conference using computers. There are so many ways to communicate with people. Another problem is that sometimes there are late shipments. In that late shipments there are also wrong parts it causes delay in the production. I remember 1 Corinthians 12:12-- the integration of the body as whole. European DCs maybe a different group, Vancouver maybe a different one but the organization is HP. Not Europe or Vancouver or Asia. They must work in unison to achieve the companies goal and deliver customer satisfaction. While HP is trying so hard to find a way to solve their dilemma, an intern thought about finding the root of the problem. It’s always better to know the where the lightning is before panicking in trying to stop the thunder. They have terrible forecasting that’s why they have...
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