Professional Documents
Culture Documents
HP Deskjet SC
HP Deskjet SC
Ranjith P - 19MBMA05
Ameer Ahammed - 19MBMH13
Mohamed Ashik A S - 19MBMA11
Muhammad Shanif - 19MBMH21
INTRODUCTION
● HP was founded in 1939
● Bill Hewlett and David Packard
● In 1990, 50 operations, Revenues of
6
Problems and Issues
Transportation
● It takes long time to ship products from US to Europe and Far
East
● If there is a shortage in Europe and Far East, it is hard to fix it
● Reduce transportation lead time in order to diminish long
replenishment lead time
Europe
North America
Asia-Pacific
Europe
North
Americ
a
Asia-Pacific 9
10
11
Product Portfolio - Europe
%
LH HH
Variance
LL HL
Demand
❖ High Demand and High Variability (HH)
❖ Low Demand and High Variability (LH)
❖ High Demand and Low Variability (HL)
❖ Low Demand and Low Variability (LL)
12
%
Asia-
Pacific
North
America
13
The Vancouver Division
● Established in the year 1979,Vancouver,Washington
14
The Kanban Process
15
● Improvements after implementing Kanban process
● Transportation
○ From Vancouver to US DC, about a day
○ From Vancouver to Far East DC and Europe DC, 4-5 weeks
16
HP Deskjet Printer Supply Chain
17
Modified Supply Chain
18
Solutions
1. Make the forecast more accurate
2. Collecting related data month by month for every single product, and
also examine aggregate demand
3. To be prepared to manufacture customized power supply and manual
4. Analyze HP and competitor’s sales of previous years
5. Define an average sale of each month, calculate standard deviation, be
aware of trends
6. Similarly, data loss of sales, stock outs, and backorders have to be
examined
7. This research has to be done especially for Europe Market and European
customer behavior
8. Customer surveys and analyze expectation/satisfaction 19
Solutions
9. Making the forecast more accurate provides some benefits
◦More accurate forecast provides more reliably safety stock level and
reduce amount of unnecessary products stocked in inventory
◦Reduce the replenishment lead time
10. Reduce unsold products, it is crucial because product’s technologic clock speed is
high
11. Reduce inventory holding cost and cost of unsold products
12. Avoid stockouts, unsatisfied demand, loss of customer
20
Solutions
13. Increase the capacity of inventory
● Analyze the cost of lost sales
● European DC runs out of space to store as DC tells and complains
● If investing on a new inventory diminishes the lost sales and it is
more profitable
● Revise safety stock rules, so the target inventory levels that is sum
of safety stock and forecast
21
Solutions
14. Establishing a new facility
● Since the transportation lead time is long, in order to satisfy customer
demand, setting up a plant might be a solution, similar to set up a new
inventory
● Since the forecast is not good in Europe, to decide whether factory is
opened or not, European sales and market have to be examined
precisely and volume of production should be worth it
● It is possible to revise the DC that is operated to complete the
integration of printers, not to manufacture a printer from a rough
22
Solutions
15. Transportation
● It is very long time to transport products from US to Europe and Far
East
● Vessels are chosen as transportation vehicle
● Air transportation would shorten the lead time and make the
company ready to satisfy customer
23
Thanks!
Any questions?