Premium Essay

Hp Deskjet Case

In: Business and Management

Submitted By srinathshetty
Words 1437
Pages 6
BADM 566 Supply Chain Management- write-up 3
Advancement Team 5: Yu Ting Tseng, Evren Yücel, Aslanbek Amrin, Nick Timmons,
Jiraphong Tisavipat
1. HP is in an inventory crisis. What should it do? Qualitatively evaluate the options in case A.
There are two significant, main issues in this case. First, we are inquiring into the best way to satisfy customer needs in terms of product availability, whilst minimizing inventory. The second refers to what exactly minimizing inventory means; is driving towards zero the proper focus for level of inventory?
These issues arise because of H-P’s incredible success in the Inkjet Printers space. Their huge sales growth with the revolutionary Deskjet brought great revenue; And with that, the archetypal dual supply chain problem of decreasing availabilities amidst increasing inventories. There are several significant recommendations that we have, broken down according to A-E, listed below:
A. Building a new European factory: We do not recommend building a new factory in Europe, because it is not entirely clear whether or not European volumes are large enough for the area to justify its own site. To be sure, the average demand in Europe is ~23,000 units/month, which is only 44% of total demand that Vancouver covers itself already. Besides, a new factory would add new overhead costs. So, even though the inventory and service crisis is most acute in Europe, and a new factory would go some ways in that regard, ultimately, there are more efficacious ways of solving the current problems. We think that the solution here lies with localization. Right now, the power supply module fitting and such is done as an aspect of FAT. The proposal out there now is to localize that piece of assembly within each
Distribution Center. This could decrease the safety stock level and increase the capability to react to demand fluctuations....

Similar Documents

Premium Essay

Hp Deskjet Analysis

...The case is classic example for inventory analysis and to identify the organizational challenges which companies face in implementing supply chain solutions. A Background to HP Deskjet: High volume and high speed manufacturing at Vancouver Manufacturing of Deskjet printers operated in 'Pull' mode Finished products of the factory consisted of printers of various models for all of the different countries Total factory cycle time was 1week Distribution Centres at: - North America - Europe -...

Words: 424 - Pages: 2

Free Essay

Case Hp

...Case: Hewlett – Packard – Supplying The DeskJet Printer in Europe Sales of DeskJet printer have grown steadily, now reaching a level of over 600,000. Unfortunately, inventory growth has tracked sales growth closely. HP’s distribution centers are filled with pallets of the DeskJet printer. The organization claims that inventory levels are need to be raised even further to maintain satisfactory product availability. The DeskJet Supply Chain HP in Vancouver does manufacturing. There are two key stages in manufacturing process: (1) printed circuit assembly and test (PCAT) and (2) final assembly and test (FAT). PCAT involves the assembly and testing of electronic components (like integrated circuits, read-only memories, and raw printed circuit boards) to make logic boards used in printer. FAT involves the assembly of other subassemblies (like motors, cables, keypads, plastic chassis, gears, and the printed circuit assemblies from PCAT) to produce a working printer, as well as the final testing of the printer. The components needed for PCAT and FAT are sourced from other HP divisions as well as from external suppliers worldwide. Selling the DeskJet requires “localization”, customize printer to meet the language and power supply of the local countries....

Words: 707 - Pages: 3

Premium Essay

Late

...DCs inventory imbalance: Timing: Short Term and long Term Nature: Strategic Inventory imbalance means HP DCs cannot meet the customer requirements. Another phenomenon of inventory imbalance is...

Words: 2325 - Pages: 10

Premium Essay

Deskjet Printer Supply Chain

...Brent Cartier, Manager for Special Projects in the Materials Department of Hewlett-Packard (HP) Company’s Vancouver Division was looking for possible...

Words: 769 - Pages: 4

Premium Essay

Hp Case

...The network of suppliers, manufacturing sites, distribution centers(DCs), dealers and customers for the DeskJet product comprised the DeskJet supply chain. Manufacturing was done by HP in Vancouver. There were 2 key stages in the manufacturing Process: 1) printed circuit assembly and test(PCAT). 2) final assembly and tes(FAT). The total factory cycle time through the PCAT and FAT stages was about 1 week. The transportation time from Vancouver to the US DC, located in San Jose, CA,...

Words: 977 - Pages: 4

Premium Essay

Hp Case

...SITUATIONAL ANALYSIS Market & the Product Hewlett-Packard (HP) Company was founded in 1939 with headquarters at Palo Alta, California. The Peripherals Group was the 2nd largest of HP’s 6 product groups. Its revenues during 1990 stood at $4.1 billion. The Peripherals Group had set technological standards in inkjet printers. This was mainly due to the sale of HP DeskJet printers. The Vancouver division located in Washington was established in 1979. HP consolidated designing and manufacturing of its inkjet printers to its Vancouver site. The inkjet printer market was characterized by its competitiveness and rapidly expanding nature especially in Europe. Value Chain Manufacturing was based out of a single unit located in Vancouver. There are two main stages in the manufacturing process, PCAT (Printed circuit assembly and test) and FAT (Final Assembly and Test). Production was based on Kanban concept. Production unit did not carry inventory but functioned only to replenish stocks at Distribution centers. Supply variability was minimal due to Kanban and safety stocks. Stocks produced at the Vanucouver unit were shipped to distribution centers in North America, Europe and Asia Pacific. The entire supply chain process involved 1 week of factory cycle time....

Words: 1448 - Pages: 6

Premium Essay

Proc 5820 Mid Term

...Hewlett-Packard Supply Chain 3 DeskJet Printer Inventory The inventory problems in the European distribution centers at HP faced long delivery lead times of about four to five weeks from its production facility in Vancouver, Washington, to Europe. The Vancouver plant is a high speed, high –volume facility where manufacturing takes about a week . Hewlett Packard was concerned with high inventory levels and an inventory imbalance in Europe. One of the characteristics of the DeskJet...

Words: 1584 - Pages: 7

Premium Essay

Venezuela Report

...Venezuela Infrastructure Deployment MBA 530 Management Information Systems – Ashland University Kevin Metzger 1. OBJECTIVES: The purpose of this report is to describe all the work we did to implement network infrastructure in the Venezuela offices. In summary, we will present the following: - A list of activities performed to upgrade the Venezuela offices. -The infrastructure situation after the upgrade. (This is shown by separate areas, like network, desktops, printers and others.) - An outline of the next actions and future issues regarding the Venezuela Offices. - A review of lessons learned (and comments to consider in future projects in Venezuela.) 2. OFFICES OVERVIEW: Lubrizol is present in Venezuela in two cities: Caracas and Valencia. In Caracas, which is the federal district of the Venezuela, there is a sales office with three computers and only a few local printer devices. Valencia is an industrial city and has a medium-sized structure that contains an administrative staff and a storage warehouse to keep products imported from other countries. In Valencia there are about ten desktops and many local printer devices. Both places have local network infrastructure implemented. Understanding the size and complexity of these environments was the first step to plan the migration project. Picture 1 shows the building of Valencia and Picture 2 shows some products in the warehouse....

Words: 2205 - Pages: 9

Premium Essay

Case on Ph

...“Hewlett-Packard DeskJet Printer Supply Chain (A) and (B).” Stanford Teaching Case, 1996. Hau L. Lee. “Product Universality: The HP Network Printer Case.” Stanford Teaching Case, 1999. Page 1 of 18 HP’s “Six-Pack” HP uses a portfolio of six DfSC techniques to reduce supply chain costs, enhance customer experience, and increase profits. (See page 11 for more...

Words: 4419 - Pages: 18

Premium Essay

Hp Case

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

Words: 1195 - Pages: 5

Premium Essay

Frfr

...Hewlett-Packard’s Deskjet Printer Supply Chain Cases (A) & (B) Discussion Guide & Answers Ranjan Ghosh | HP’S DESKJET | Industry characteristics: competitive, fast growing, exploding in Europe, changing distribution channel, rapid technological advances. Product characteristics: quite, medium price, high print quality, leading technology, commodity–like, lighter and smaller, reasonable speed. Supply chain characteristics: centralized manufacturing, DCs fulfilling pure distribution functions, bulky products resulting in long ocean transit, lean manufacturing shifts inventory burden to DCs. | Inventory-Service Crisis | What crisis: inventory imbalance, i.e., some product options having excess inventory while some others have shortages....

Words: 1118 - Pages: 5

Free Essay

Price Aseanic

...Only @ PC Gilmore Platinum (02) 721-3496 / (02) 726-7628 platinum@pcgilmore.com.ph AMD PROCESSOR AMD A4-4020 3.2GHz Socket FM2 AMD A4-5300 3.4/3.6Ghz Socket FM2 AMD A4-6300 3.7/3.9GHz Richland FM2 AMD A6-5400K 3.6/3.8Ghz Black Ed. FM2 AMD A6-6400K 3.9 Ghz Richlad FM2 AMD A8-5600K 3.6/3.9Ghz Black Ed. FM2 AMD A8-6600K 3.9Ghz Black Ed Richland FM2 AMD A10-5800K 3.8/4.2Ghz Black Ed. FM2 AMD A10-6790K 4.0/4.3GHz Richland FM2 AMD A10-6800K 4.1Ghz Black Ed. AMD A10-7700K Kaveri (4CPU+6GPU)3.5Ghz AMD A10-7850K Kaveri (4CPU+8GPU) 3.7GHz AMD FX4300 Vishera 4-Core 3.8/4.0GHz AM3 AMD FX6300 Vishera 6-Core 3.5/4.1GHz AM3+ AMD FX8350 Vishera 8-Core 4.0/4.2GHz AM3+ *ADD P100 FOR NON-UNIT PURCHASE 1590 1690 1730 2530 2730 4230 4590 5630 6100 7050 7530 8580 5590 5790 9680 Kingston Hyper-X 8GB DDR3 1600/1866 Kingston 2GB PC6400 DDRII 800 SODIMM Kingston 2GB PC3-10600 DDR3 1333 SODIMM Kingston 4GB PC3-10600 DDR3 1333 SODIMM Kingston 8GB PC3-10600 DDR3 1333 SODIMM *ADD P100 FOR NON-UNIT PURCHASE Only @ PC Gilmore North EDSA (Asus) (02) 441-1368 sm_north@pcgilmore.com.ph 3800 1650 1050 1800 3400 GALAXY GT730 2GB DDR3 128BIT GALAXY GTX750 1GB DDR5 128BIT GALAXY GTX560 1536MB DDR5 GALAXY GTX750Ti GC 2GB DDR5 GALAXY GTX770GC 2GB DDR5 256BIT GALAXY GTX770HOF 2GB DDR5 256BIT MSI N420-1GD3 1GB DDR3 128BIT 2300 3950 2430 3030 4230 6250 7950 2350 6950 2780 3700 6700 9200 9450 1850 2100 4800 MSI N630-1GD5/V1 - 1GB DDR5 128BIT MSI N630-2GD3 GT630/2GB/128BIT/DDR3 MSI N630GT-MD4GD3 4GB DDR3 128BIT......

Words: 4805 - Pages: 20

Premium Essay

Student

...Hewlett-Packard’s Deskjet Printer Supply Chain Cases (A) & (B) Discussion Guide & Answers Ranjan Ghosh | HP’S DESKJET | Industry characteristics: competitive, fast growing, exploding in Europe, changing distribution channel, rapid technological advances. Product characteristics: quite, medium price, high print quality, leading technology, commodity–like, lighter and smaller, reasonable speed. Supply chain characteristics: centralized manufacturing, DCs fulfilling pure distribution functions, bulky products resulting in long ocean transit, lean manufacturing shifts inventory burden to DCs. | Inventory-Service Crisis | What crisis: inventory imbalance, i.e., some product options having excess inventory while some others have shortages....

Words: 1118 - Pages: 5

Free Essay

Assigment 2 a Complete Home Network

...Assignment 2: A Complete Home Network Jonathan Scholl Strayer University CIS106 Professor Jamshid Haghighi June 7, 2016 A Complete Home Network Introduction: I believe this is way more than enough money for an entire home network, but it also comes down to what the needs of everyone in the household are. If you have gamers or those with workstations, then you’ll definitely need to take into consideration that you’ll need better than average hardware. But some family members may only need a simple notebook, tablet, or even their smart phone to connect to the internet. Most people enjoy streaming applications such as Hulu, Netflix, and Crunchyroll. Before you start, you need to figure out what the network will be used for and tailor it to the needs of everyone who uses it. For this example, I’m going to use my own family’s network. It’s a simple network that will most likely be sufficient for the average family. Starting out, you need to research the internet service providers (ISPs) in your area. These can range from large companies to small local companies. If you do a lot of video streaming and gaming, then you’ll want a fairly good connection speed. I’d recommend going with at least 20Mbps download and 5Mbps upload. The company we use is a local company called Forsyth CableNet. Hardware: You’re ISP can provide you with rental modems. I believe this to be a great option because modems can be costly to replace if they’re damaged. It usually means adding a...

Words: 1436 - Pages: 6

Premium Essay

Supply Chain Management Assignment on Bullwhip Effect and Delayed Differentiation

...Supply Chain Management Assignment ON BULLWHIP EFFECT AND DELAYED DIFFERENTIATION Submitted to Prof Dr. P.R.S.Sarma Submitted by VENKATA RAJA GOPAL RACHERLA Regd. No.: 1226109236 SEC-B MBA (IB) - 2009-11 1 INDEX S No. I 1 2 3 Topic Bullwhip effect Introduction Explanation Causes of Bullwhip Effect Possible Remedies The Bullwhip effect in the electricity sector Conclusion Postponement or Delayed Differentiation Page no. 3 4 4 5 4 5 6 7 6 II 1 10 11 12 Introduction 2 Forecasting uncertainty 14 3 The long-term potential 16 2 THE BULLWHIP EFFECT 3 1. Introduction The bullwhip effect is the magnification of demand fluctuations, not the magnification of demand. The bullwhip effect is evident in a supply chain when demand increases and decreases. The effect is that these increases and decreases are exaggerated up the supply chain. The essence of the bullwhip effect is that orders to suppliers tend to have larger variance than sales to the buyer. The more chains in the supply chain the more complex this issue becomes. This distortion of demand is amplified the farther demand is passed up the supply chain. Proctor & Gamble coined the term “bullwhip effect” by studying the demand fluctuations for Pampers (disposable diapers). This is a classic example of a product with very little consumer demand fluctuation. P&G observed that distributor orders to the factory varied far more than the preceding retail......

Words: 3625 - Pages: 15