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CASE REPORT | Hewlett-Packard Company | Desktop Printer Supply Chain | | | |

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SUBMITTED BY
Allada Prasanth (1211087)
Ishan Puri (1211100)
Manish Pathak (1211113)
Priyanka singh(1211126)
Sarang Bhawre (1211139)
Tarun Gopalkrishnan(1211152)
INTRODUCTION:
Hewlett-Packard (HP) Company was founded in 1939 with headquarters at Palo Alta, California. It grew steadily over the next fifty years, diversifying from its base in electronic test and measurement equipment into computers and peripherals products which now dominated their sales. The Peripherals Group was the second largest of HP’s six product groups, with 1990 revenue of $4.1 billion. The Peripherals Group had set technological standards such as disposable heads in inkjet printers. This report is with reference to the DeskJet Printer division of HP.
HP DeskJet printers’ value chain comprised of four nodes (a) Suppliers (b) Manufacturing (c) Distribution centers and (d) Dealers.
There were two key stages in the manufacturing process as shown below in the figure: 1. PCAT – printed circuit assembly and test 2. FAT – final assembly and test

Figure 1. The Vancouver Supply Chain
Manufacturing was based out of a single unit located in Vancouver (USA). Production unit maintained adequate safety stocks for raw materials. Production was based on Kanban concept. Production unit did not carry inventory and functioned on made to order scheme to replenish stocks at Distribution centers. Supply variability was minimal due to Kanban and safety stocks.
Stocks produced at the Vancouver unit were shipped to three distribution centers one in each region i.e. North America, Europe and Asia Pacific. The entire supply chain process involved 1 week of factory cycle time. For transportation to places within the US, it took an additional day whereas for orders outside the US (Europe and Asia),

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