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Hewlett-Packard

Hewlett-Packard:
DeskJet Printer Supply Chain

Name of class and semester
Names of Students Matrikelnr.

Exercise 1 – Inventory/Service Crisis
a) During the early 1990s, the famous manufacturer of computers and peripherals, Hewlett-Packard (HP), faced several severe problems concerning the inventory management of its very successful DeskJet printer. The printer was produced in HP’s production facility in Vancouver. The completely finished product was sorted there and then shipped to one of the three distribution centers in North America, Asia and Europe.
To guarantee high product availability to the dealers, HP operated its distribution centers (DCs) in a make-to-stock mode. Therefore the DCs acted as inventory stocking points between the manufacturing site and the dealers who sell the printers to the end-customer.
Under increasing competitor’s pressure the DCs were forced to hold extremely high safety stocks to ensure high service levels. Despite the high safety......


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Approximate Word Count: 2791
Approximate Pages: 12 (250 words per double-spaced page)

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