Deskjet Printer Case
Supply Chain Management
Group work 2: HP DESKJET PRINTER SC
Group 11: Claudia Jongerius S120008 Sjoerd Groot S120011 Chris Louman S120035 Tom van der Laan S120042
PTMSc16: June 6th 2013
1. Consider the solution alternative - placing scientifically based inventory system, (say Periodic review system) - to solve inventory-service crisis. Estimate cycle inventory, safety inventory and pipeline inventory, for all desk jet printer models, to achieve 95% cycle service level (under the option of sea shipment mode). Estimate the annual average supply chain inventory cost (do not forget to include the cost of pipeline inventory in the annual average supply chain inventory cost).(3 points)
All the frameworks that we have drawn in this group work show as well the formulas that are used as the explanation in text. All the figures that concern demand data (like the average monthly demand of AB printers of 15.830 units) are taken from the demand table in Appendix 1. Also we have rounded all number to whole numbers in between the calculations to keep the explanation in text aligned with the results of the calculations.
The table below shows that the cycle inventory is 1.828 units, the pipeline inventory is 18.280 units and the safety inventory is 2.703 units, all to achieve a 95% cycle service level (under the option of sea shipment mode). The annual average supply chain inventory cost are $4.654.950.
2. Consider the solution alternative - using Air Transport - to solve inventory-service crisis. Assess the economic impact of air transport solution to provide 95% cycle service level. Which mode of transport would you choose when you tradeoff inventory cost savings and transportation cost increase?(5 points)
The table on the next page shows that the annual average supply chain inventory cost under the option of air transport are $1.768.650. Question 1 has shown that the annual average supply chain inventory cost under the option of sea
Group work 2: HP DESKJET PRINTER SC
Group 11: Claudia Jongerius S120008 Sjoerd Groot S120011 Chris Louman S120035 Tom van der Laan S120042
PTMSc16: June 6th 2013
1. Consider the solution alternative - placing scientifically based inventory system, (say Periodic review system) - to solve inventory-service crisis. Estimate cycle inventory, safety inventory and pipeline inventory, for all desk jet printer models, to achieve 95% cycle service level (under the option of sea shipment mode). Estimate the annual average supply chain inventory cost (do not forget to include the cost of pipeline inventory in the annual average supply chain inventory cost).(3 points)
All the frameworks that we have drawn in this group work show as well the formulas that are used as the explanation in text. All the figures that concern demand data (like the average monthly demand of AB printers of 15.830 units) are taken from the demand table in Appendix 1. Also we have rounded all number to whole numbers in between the calculations to keep the explanation in text aligned with the results of the calculations.
The table below shows that the cycle inventory is 1.828 units, the pipeline inventory is 18.280 units and the safety inventory is 2.703 units, all to achieve a 95% cycle service level (under the option of sea shipment mode). The annual average supply chain inventory cost are $4.654.950.
2. Consider the solution alternative - using Air Transport - to solve inventory-service crisis. Assess the economic impact of air transport solution to provide 95% cycle service level. Which mode of transport would you choose when you tradeoff inventory cost savings and transportation cost increase?(5 points)
The table on the next page shows that the annual average supply chain inventory cost under the option of air transport are $1.768.650. Question 1 has shown that the annual average supply chain inventory cost under the option of sea