1. Develop an inventory model for managing the DeskJet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe. Using the data in Exhibit 17.13‚ apply your model and calculate the expected yearly investment in DeskJet printer inventory in the Europe DC. Answer: 1. In order to calculate the yearly investment in DeskJet printers‚ we calculate the yearly investment of the printers separately and then add them together to get the total yearly cost. There
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Case: Hewlett-Packard-Supplying the Deskjet Printer in Europe The DeskJet printer was introduced in 1988 and has become one of Hewlett-Packard’s (HP’s) most successful products. Sales have grown steadily‚ reaching a level of over 600‚000 units in 1990. Unfortunately‚ inventory growth has tracked sales growth closely. HP’s distribution centers are filled with pallets of the DeskJet printer. Worse yet‚ the organization in Europe claims that inventory levels there need to be raised even further
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HP DESKJET 1. HP is in an inventory crisis. What should it do? Qualitatively evaluate the options given in case A: (a) Build a new European factory‚ (b) Utilize air shipments for Europe (c) Do better forecasting (d) Reduce customer service by lowering fill rate (e) Keep more inventory. a) HP has 3 distribution centers. Those of Europe and Asia Pacific Distribution Centers are in an inventory crisis. Especially crisis is becoming deeper in European Distribution Center. Is it a solution
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MARKETING CHANNELS EXECTIVE SUMMARY This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a socalled “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers in Europe and Asia-Pacific‚ customer service levels were unsatisfactory. Affected by growing competition this problem had to be handled quickly. EXECTIVE SUMMARY
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1. INVENTORY/SERVICE CRISIS FOR HP DESKJECT PRINTERS There are a number of causes of the inventory/service crisis described in HP: • The first cause was the demand variability of printers. For example‚ the demand for model A in Europe had the monthly standard deviation of 32.4 while the monthly mean was 42.3. Combined with increasing pressure from resellers that forced HP to offer the resellers flexible distribution‚ fluctuations in demand resulted in the high levels of safety stocks and high
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HP Deskjet Case Study By: Mohd. Zubair Saifi (32237) Introduction In 1990’s‚ Hewlett-Packard faced several problems with inventory levels for the DeskJet Printer product line. This printer was produced in Vancouver’s facility and from there was shipped to a distribution center. HP has three distribution centers (DC) North America Asia Pacific and Europe 2 Mohd. Zubair Saifi‚ SIBM-Pune Deskjet Supply Chain 3 Mohd. Zubair Saifi‚ SIBM-Pune Cycle time for
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Manager of Special Projects‚ Material Department at HP Vancouver division‚ it is my decision to move towards to postponement of Product Differentiation. The decision regarding the postponement strategy is of very strategic importance to future growth of HP. I recommend full review of inventory management system for desk jet printers & design a strategy to implement processes leading to postponement of product differentiation‚ in order to reduce inventory imbalance & satisfy customer demands. The short
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HP Deskjet Printer Supply Chain Case Analysis - This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a so-called “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers in Europe and Asia-Pacific‚ customer service levels were unsatisfactory. Affected by growing competition this problem had to be handled quickly. Brent Cartier
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SGSCMF-003-2001 HP DeskJet Printer Supply Chain Global Supply Chain Management Forum GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY GSS3B MAY 2001 Hewlett-Packard Company DeskJet Printer Supply Chain (B)1 Brent Cartier‚ Manager of Special Projects in the Materials Department of the HewlettPackard (HP) Vancouver Division‚ was enjoying a hot cup of coffee after lunch on the long flight to Germany. The last few days had been exhausting. Meetings‚ conferences calls and non-stop phone calls
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founded Hewlett-Packard Company in 1939. HP diversifies its production into electronic test‚ measurement equipment and computers and peripherals products: in 1990‚ HP had over 50 operations worldwide with revenues of $13.2 billion and net income of $739 million. In 1988‚ the Deskjet printer was introduced and had become one of HP’s most successful products‚ with sales of 600‚000 units/$400 million in 1990. Summary This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and
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