Free Essay

Hp Ups Case

In:

Submitted By raghuram
Words 334
Pages 2
HP-UPS:
The main cost difference in two scenarios should be the following: Cost | Without UPS | With UPS | Inventory | High | Low | Trans-shipment | Low | High | Exchange rate impact | Low | High | Interest Impact | High | Low | Base material cost | Low | High | Lost sales | High | Low | Obsolescence | High | Low |

If the costs increase in transshipment, exchange rate and base material cost is more than that reduced through inventory reduction(combined should have less variation than separate individual), interest impact reduction (reduced inventory), lost sales reduction and obsolescence reduction, the decision should be to go with a universal printer. The simulations can give us a certain idea of where the costs are headed, but the biggest advantage of the printers with UPS will come towards the end of product life cycle, which the game is not modeled to cater for.
We are using the order up to formula (service level of98%) to calculate the number of units required in each case, but the simulation does not catch the less inventory for two reasons (in case of with UPS): 1. There is no trend to demand, so both US and Europe continue to sell perfectly randomly 2. The simulation does not take the life cycle of the product into account
Based on the data, and the aforementioned factors, and the past trend with the printer viper, the idea is that the configuration with UPS should be cheaper than the configuration without UPS. Further, as far as trans-shipping is concerned, we are transferring to match any excess demand from US to Europe, or vice versa, to immediately meet for any shortfalls in the future, even before they happen, provided there is stock available from the place being shipped. Furthermore, the allocation of the units is also based on the demand received in the previous periods. If the demand in the previous period is excess in Europe, more units will be allocated to Europe to avoid any lost sales, (the same holds true for any excess demand in US).

Similar Documents

Premium Essay

Mba 7294

...& CM SPRING 2013 CAPSTONE CASE- HEWLETT PACKARD Armah Q. Fahnbulleh Wilmington University February 19, 2013 Abstract From the Introduction to Leadership to the Negative (Dark) Side of Leadership and everything thing in between, this has been a life changing seven weeks. My mind was impacted with knowledge that I did not have prior to taking this course. This course has taught me about how to go about bringing change by getting everyone involved especially, the people that are going to be affected by the change. Working with my team members on our Capstone Case, I have learned what it takes to be a team player and a team leader. Listen to all opinions, be very thoughtful and make a sound and decisive decision on which direction to lead your company. Most of all I learned that Leadership and Change are about “PEOPLE.” 1. What have you been assigned to provide in the development of the Capstone Case? Why is it important to the major premise of the Teams initiative? I have been assigned to research company personnel needed to be included in the planning, implementing, sustaining the change and why? A strong leader with a vision, plans, and surrounded by a team of individuals that believe in the vision and trust the leader can effect change. The leader is very important to the major premise of the team initiative because without a leader the team will not have direction. This is like steering a ship without its captain. For our capstone case on Hewlett Packard, I selected...

Words: 1119 - Pages: 5

Premium Essay

Hp Case Analyse

...HEWLETT-PACKARD CASE ANALYSIS Pooya Mehmandoost University of Houston-Victoria April30, 2014 Management and organizational behavior Executive summary The world’s leading PC and printer manufacturer, Hewlett-Packard, was facing multiple problems during the first decade of the 21st century. It provides hardware, software, and services to consumers, small and mid-sized business. Companies such as Hewlett-Packard are supposed to be a stable, rock-solid institution, where a change in CEO rarely happens. But it doesn't always happen that way. In the past six years, HP changed CEO four times. This case study aims to elaborate the reasons of major problems and issues that HP has recently faced in different levels of its management and focuses on corporate behavior of the Hewlett Packard Board of directors and its effect on corporate culture and structure within the organization according to the concepts of the management and organizational behavior (MOB) theories. This study is based on real facts that occurred with the Board of Directors of the Hewlett Packard organization. Business magazine, academic articles, and online submissions, as well as books about the HP way of business were diagnosed for their structure, content, and accuracy of the topic. The research draws attention to the fact that the combined companies experienced many problems-financial, cultural, and structural-resulting in poor performance of Carly Fiorina, who was named CEO of HP in 1999 and fired in 2005...

Words: 3758 - Pages: 16

Premium Essay

Hp Case

...MAC 600 Business Management and Governance 3rd Trimester – AY 2013-2014 CASE ANALYSIS Hewlett-Packard Under Carly Fiorina and After Her Submitted by: Chris L. Espina Date of Submission: May 17, 2014 I. Perspective held by the Students This case talks about the management and leadership of Carly Fiorina, the chosen CEO of HP after her long years with AT&T and Lucent Technologies. She was known to be a woman of “silver tongue and iron will”. She dropped out of law school and pursued for Business Administration and Marketing Career and found herself successful in the field of sales and marketing, thus paving her way to be a top choice for the chief executive position of Hewlett-Packard. The perspective taken in this analysis was on Carly Fiorina. It is then to be assessed, her actions and decisions made for the company and how did it affect in the entity’s performance. Recognition of elements and factors were done regarding on the negative effects of the actions she took for HP, that made her lose her credibility in the company and resulted to her resignation from the position she was handling. II. Case Facts Hewlett-Packard is known to be the second largest computer maker in the world. In 1999, the company hired Carly Fiorina to be its Chief Executive Officer, who is the first outsider who ever filled a top position in the company for the past 60 years. She was a student of philosophy, medieval history and marketing. With her skills in sales...

Words: 1009 - Pages: 5

Premium Essay

Conflict Management with Sales Partners at Hp

...Case Study: Conflict Management with Sales Partners at HP Case Study: Conflict Management with Sales Partners at HP Adrià Rodríguez Porras Student ID: 1300014 Course: Management Science (Marketing) Summer Semester 2014 Adrià Rodríguez Porras Student ID: 1300014 Course: Management Science (Marketing) Summer Semester 2014 Hewlett-Packard Company (or HP) is an American multinational information technology corporation specialized in providing hardware, software and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises. In 2012 it was the world's largest PC vendor by unit sales. [1] The purpose of this illustrative case study is to describe the company’s adopted strategy used to reach this privileged position. By means of analysing HP’s sales system, sales channels and the recent conflicts with some partners, we will try to find out not only what has sparked these problems but also help prove a solution for this undesirable situation. Hewlett Packard’s sales system Reaching those levels of worldwide excellency requires a very well-defined marketing strategy, since they not only market their products directly but also via partnerships. That is why they invest time and energy in attracting, training and keeping valid partners. A good example of that is the PartnerOne program.[2] When designing the sales system, HP pondered who was going to undertake the selling activities (selection of sales entities) and how was meant to combine...

Words: 1752 - Pages: 8

Premium Essay

Hp-Cisco

...HP- CISCO Alliance • • Executive Summary • • Despite HP- CISCO top management intentions and senior and middle management commitment to renewed alliance stalemate has reached, due to lack of clearly defined ground rules, absence of detailed plan of action, cultural disconnect in decision making and non availability explicit financial integration plan. • • Hurdles for the formal agreement between the two organizations • Change of management team • Both teams assuming that they are middleware spanning horizontally across Bus and vertically between top management and sales forces • Alliance team asking BUS to do activities , which might be beneficial to the organization’s whole but a loss proportion to the unit • Multiple interdependencies and potential for conflicts • Incentives stopped for HP sales staff for selling Cisco products • Training needs of managers to understand both technologies • Organizational changes for persona reason of employees • Absence of dedicated sales teams • Product overlap beyond limits • Non availability of performance metrics for individual business unit initiatives • Absence of clearly defined metrics for customer requirements • Alliance team members not meting regularly for lack of interactions • Demand for high level of management skills in the absence of formal authority • • Positive points ...

Words: 5590 - Pages: 23

Premium Essay

Marketing

...describes HP's Structure? Before Hurd took over HP the company wasn't doing so well structurally. Back then it was hard to determine what type of sales force structure was being implemented. It was a case of too many chiefs and not enough Indians. The HP reps were responsible for so many products that they lack the knowledge needed to help a customer with any product in specific and the customers were left frustrated with HP's unwieldy and unresponsive sales force. HP sales force consisted of three main product divisions: the personal systems group, the technology solutions group and the image and printing group. However all salespeople reported directly to the customer sales group, which meant that they were responsible for selling products from all three divisions. Because of all the multiple layers of management the sales force decision making and customer responsiveness was slow the salespeople themselves were left feeling frustrated as well and the company had become so centralized with so many layers the it had become unresponsive and out of touch with customers and their needs. Once Hurd took over HP's he restructured and overhauled its sales structure by eliminating the customer sales group division and doing away with the three layers of management. By eliminating the customer sales group he gave each salesperson the opportunity to develop an expertise in a specific product area working with a smaller number of products. HP started focusing on the customer as well as their...

Words: 923 - Pages: 4

Free Essay

Hewitt-Packard Company

...Chapter 14 Case – “Hewitt-Packard Company” Instructor: Professor Pamela McLaughlin Course: Management of Concepts – BUS 302 Date: August 21, 2011 * Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. One of the more serious problems that I have found in this case is under management. When a company is under managed, workers struggle because their management is not sufficiently engaged to provide the direction and support they need. The management is not informed about worker’s needs and, therefore, is unable to help with resources and problem solving. Thus management cannot judge what expectations are reasonable, and cannot set goals and deadlines that are ambitious but still meaningful. Meanwhile, the under-manager gets caught in a vicious downward spiral managing problems after the fact, putting out fires that never should have gotten started in the first place, salvaging wasted resources and turning around employees who have been going in the wrong direction, unnoticed, for days, weeks or months. Secondly, having a bonus system that was so complicated that no one understood it is never good for a company. Bonus systems should be as simple as possible to measure and track. Also a bonus system should be designed to reward good behavior, not necessarily to change or punish poor behavior. Lastly, a complex and confusing matrix structure blurred accountability lines and slowed the decision making...

Words: 1183 - Pages: 5

Premium Essay

Just-in-Time Production at Hewlett-Packard, Personal Office Computer Division

...------------------------------------------------- Case: Just-in-Time Production at Hewlett-Packard, Personal Office Computer Division Question 1: Should it be easier to run JIT effectively on the 150 than on the 120? Explain. Considering information given in the beginning of the case, it should be easier to run JIT effectively on HP-150. 1) HP-150 requires less number of parts, which leads to less inventory needed (20,000 active part numbers for HP-120 and its options vs 450 part numbers for HP-150); 2) Less suppliers are needed for HP-150 (200 suppliers), comparing to HP-120 (2,000 for HP-120 and its options). It will be easier to establish and maintain efficiently a long-term trustworthy relationship. 3) HP-150 has less variety (17 types of keyboards due (languages) while CPU is the same), but for HP 120 there were an average of 6 options per product. Less variety, again, provides fewer inventories and more flexibility to the process. To reduce complexity Question 2: How serious is the forecasting problem? In other words, does success with JIT depend on good forecast? Forecasting problem seems to be severe at the plant. Case says that “…manufacturing does a lot of “second guessing” because the forecasts are terrible”. However, good forecast for JIT systems is crucial. As JIT significantly reduces the amount of raw materials, WIP inventories and finished goods on hand, it greatly relies on accurate information, i.e. on the timely delivery of exactly the...

Words: 2055 - Pages: 9

Premium Essay

Hp Case

...Executive Director William Patterson, of CtW Investment Group, addressed to Hewlett-Packard’s (HP) Lead Director and Corporate Governance Committee Chairman Rajiv Gupta, I have discovered many new items I was not previously aware of. This well thought and precisely constructed letter clearly addresses the issues and concerns felt by a majority of HP’s shareholders following the news regarding the recent $8 billion of impairment charges. If I were a stockholder of HP, I would be equally as concerned and would question the judgment of upper management and the board of directors. When an impairment charge of $8 billion comes out one must simply question the accounting that was going on behind the scenes, and ask why this came out of the blue so suddenly. In HP’s case, Ernst & Young (E&Y) have been their independent auditors since 2000. This was before Sarbanes-Oxley (SOX) was in effect. E&Y’s questionable behavior lies in the amount of non-audit related fees charged to HP. The whole point of SOX was to keep auditors independent of their clients by eliminating the connection between consulting and auditing the same client. When these two items go together, that true sense of independence is impaired. In any case, E&Y is under scrutiny because as being HP’s independent auditor and missing such a huge charge of impairment, one must investigate the accounting leading up to that point. When exaiming HP’s proxy statement (def 14a) I found the section related to...

Words: 1149 - Pages: 5

Free Essay

Hp Discovery Content Guide

...HP Universal CMDB Software Version: UCMDB 10.10, CP 13.00 Universal Discovery Content Guide - HP Integrations Document Release Date: November 2013 Software Release Date: November 2013 Legal Notices Warranty The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. The information contained herein is subject to change without notice. Restricted Rights Legend Confidential computer software. Valid license from HP required for possession, use or copying. Consistent with FAR 12.211 and 12.212, Commercial Computer Software, Computer Software Documentation, and Technical Data for Commercial Items are licensed to the U.S. Government under vendor's standard commercial license. Copyright Notice © Copyright 1996 - 2013 Hewlett-Packard Development Company, L.P. Trademark Notices Adobe® and Acrobat® are trademarks of Adobe Systems Incorporated. AMD and the AMD Arrow symbol are trademarks of Advanced Micro Devices, Inc. Google™ and Google Maps™ are trademarks of Google Inc. Intel®, Itanium®, Pentium®, and Intel® Xeon® are trademarks of Intel Corporation in the U.S. and other countries. Java and Oracle are registered trademarks of Oracle Corporation and/or its affiliates. Microsoft®, Windows®, Windows NT®, Windows® XP, and Windows...

Words: 15907 - Pages: 64

Free Essay

Paper

...Management Principles - Case Analysis No. 2  Worth 5% and due in Week 11 (March 26th)  Individual assignment to be done as homework  To be done in Word with a cover page  Read the following Case in the News  Fully answer the 3 questions below Information Technology: Stopping the Sprawl at HP When Randy Mott joined Wal-Mart fresh out of college in 1978, its in-house tech staff had only 30 members and company founder Sam Walton had not yet become a believer in the power of computing to revolutionize retailing. But Mott and his cohorts developed a network of computerized distribution centers that made it simple to open and run new stores with cookie-cutter efficiency. Then in the early 1990s, Mott, by this time chief information officer, persuaded higherups to invest in a so-called data warehouse. That let the company collect and sift customer data to analyze buying trends as no company ever had -- right down to which flavor of Pop-Tarts sells best at a given store. "Information technology wasn't Mr. Sam's favorite topic. He viewed it as a necessary evil," recalls fellow Wal-Mart Stores Inc. alumnus Charlie McMurtry, who has worked with Mott for years. "But later, Randy got [Walton's] ultimate compliment. He said, 'Man, you'd make a great store manager."' By the time Mott took his latest job last summer, as CIO of Hewlett-Packard Co. (HPQ) he had become a rock star of sorts among the corporate techie set -- an executive who not only understood technology and how it could...

Words: 1423 - Pages: 6

Premium Essay

Talent Management

...Introduction to talent management (IT) Introduction to the 2 companies being considered Findings on company 1 Findings on company 2 Comparative study Critical analysis INTRODUCTION Talent management is a name for a human resources program that applies to more than just computing hours and taking care of legal aspects of employment. Rather, talent management applies to the strategy of recruitment and retention, compensation, assessment and review. In some cases, talent management is a process handled over multiple departments. In other cases, it may be solely handled by human resources. Talent management's first responsibility is to attract and retain qualified employees. Without this primary function, no company can achieve its full potential. Recruiting workers can be a difficult task, especially in times of low unemployment. The further up the ladder the position is, the harder the position will be to fill. Recruitment and retention may depend on adequate or competitive compensation packages. These packages must be carefully scrutinized based on industry standards. Although pay may be the most important of the compensation package, it is not the only part. Traditional benefits such as health insurance and vacation also play a role. However, newer benefits, such as flexible packages and telecommute options can also be very attractive for some positions. Talent management's job is to find out what compensation packages are needed and then see if those, or something...

Words: 2823 - Pages: 12

Premium Essay

Asdfasdgasdgash

...Case analysis  1. THE RISE AND FALL OF CARLY FIORINA (Chapter 4)  For a long time, Carleton S. (“Carly”) Fiorina was one of the best-known CEOs in the world. Brought in as Hewlett-Packard‟s (HP) CEO in 1999, Fiorina was instantly recognizable for her charisma, visibility, and aggressiveness. Practically every OB book (including this one) featured her. She was even mentioned as a possible cabinet member of the Bush administration or a Senate candidate from California. Widely praised as a change agent and a visionary leader at Lucent  Technologies—which she led before joining HP—Fiorina had a way of generating enthusiasm and excitement. Some called her a “rock star” CEO.   However, under Fiorina‟s leadership, HP struggled as the world‟s second-largest computer company. Although revenue climbed steadily under her leadership, profits did not. Nor did the stock price—an investor who bought HP stock the day Fiorina was hired would have seen 55% of the investment vanish by the time she was fired. Her acquisition of Compaq in 2002, which Walter Hewlett (son of the company‟s co-founder and one of HP‟s largest shareholders) was adamantly against, never paid off as promised.   As a result of these struggles, the HP board tried to find a way to limit Fiorina‟s powers and give more authority to other executives. A month before her firing,  Fiorina was told point-blank by three board members that she had to change her style. She adamantly refused. A month later, when informed of the board‟s decision to fire her...

Words: 1836 - Pages: 8

Free Essay

Hp Case

...of the case, it states three alternative ways for HP to continue the business in tape drive, outsource the final assembly, develop a lowest total cost supply chain, join forces with a competitor and outsource the final assembly. HP, as a major computing and imaging solutions company, had many different service departments, such as imaging and printing systems, computing systems, IT services, and other business. The tape drive belonged to the computing systems. The reason for HP still wanted to keep the tape drive business was, as the supply chain manager, Gary, described, there still existed huge potential demand for tape. Gary assumed the consumer would keep requiring large information from the Internet so that the storage business would keep growing till 2007. Gary knew that in the high competitive market required HP to keep a low cost with a high volume to obtain a high profit and margin. HP had become the leader in tape drive business in the medium segment market for a long time and new technology had been introduced to the market and HP wanted to be a strong competitor in the new tech market. While, since HP did not have special technology and expertise as well as enough space, HP could not do the business in-house. On the other hand, HP sold its products to reseller and OEM, these two sources then sell products to consumers. HP had a good delivery system and delivered products on time to the OEM. In 1997, due to the high overhead cost in HP in house production, HP outsourced...

Words: 600 - Pages: 3

Premium Essay

Hp Alliance

...The HP-Cisco Alliance In early 1997, the first HP-Cisco alliance was first formed. HP was Cisco’s first publicly announced strategic alliance partner. The agreement between the two companies focused on technology collaboration, product integration, professional services, and customer support. The first contract lasted until February of 2002, when both HP and Cisco decided to further formalize and expand their alliance by signing a new contract. Shortly afterwards in March of 2002, HP merged with Compaq Computer, Inc. This temporarily slowed alliance activities between HP and Cisco. The “new HP” needed a few months to reorganize with the addition of Compaq. A few months later, in August of 2002, the alliance activities began to move forward once again. The alliance was a win-win for both HP and Cisco. Both companies were widely respected global technology companies. At the time, Bill Russell and Jim Heal of HP and Steven Steinhilber and Mike Thomas of Cisco Systems were at the forefront of the management teams responsible for forging a stronger, more formal alliance between the two companies. The original mission of the alliance formed in 1997 was to provide co-marketing enterprise networking solutions to HP and Cisco’s join customers. Through this alliance, HP and Cisco developed and sold four joint solutions – IP telephony, service and network management, mobility/wireless, and Utility Data Center. All four of these ventures were successful. Revenues generated...

Words: 1193 - Pages: 5